Uber vs. DoorDash: Which Stock Offers Higher Returns?

Uber and DoorDash are both popular delivery and transportation companies with significant revenue growth. While Uber generates more revenue globally, DoorDash leads in the US. Both companies have improving financials, with Uber's net income rising to $3.1 billion in the first half of 2025, and DoorDash's cumulative orders reaching 10 billion. Investors should consider factors like valuation and growth prospects to decide which stock to buy.

In the rapidly evolving landscape of delivery and transportation services, two companies stand out: Uber and DoorDash. Both have demonstrated significant revenue growth and improving financials, making them attractive to investors. However, each company has its unique strengths and challenges.

Uber Technologies, Inc. (NYSE: UBER), a global transportation giant, has seen its delivery segment grow rapidly, with revenue increasing by 15% in the first quarter of 2025 and 20% in the second quarter. This growth is driven by a globally recognized brand and a strong presence in over 15,000 cities worldwide [1]. Uber's mobility segment generates more revenue globally than DoorDash, but it lags behind in the U.S. delivery market [1]. The company's foray into autonomous driving is a strategic move that could position it as a key player in this emerging technology.

Uber's financials have shown remarkable improvement. In the first half of 2025, revenue surged 16% compared to the same period in 2024, while costs and expenses rose by 8%. This led to a net income of $3.1 billion, a significant increase from the $361 million earned in the first half of 2024 [1]. The company has also initiated a $20 billion share repurchase program, indicating confidence in its financial health. Despite a one-time benefit, Uber's P/E ratio of 16 and forward P/E ratio of 25 suggest it is undervalued relative to its growth prospects [1].

DoorDash Inc. (NASDAQ: DASH), on the other hand, leads the U.S. delivery market. In the second quarter of 2025, it reached 10 billion cumulative orders, with 761 million orders made on the platform in Q2, a 20% yearly increase [1]. DoorDash has expanded internationally, operating in 30 countries, largely through acquisitions such as Deliveroo and SevenRooms [1]. Its revenue grew by 23% in the first half of 2025, and the company turned profitable, reporting a net income of $478 million during the first two quarters of the year [1].

While DoorDash's growth is impressive, its valuation is relatively high, with a P/E ratio of 150 and a forward P/E of 55. This suggests that investors may be paying a premium for its growth prospects [1]. However, its recent turn to profitability and strong revenue growth could justify this high valuation.

In conclusion, both Uber and DoorDash have shown impressive growth and improving financials. However, Uber's global presence and lower valuation make it an attractive holding for investors seeking long-term growth. DoorDash's strong U.S. market position and rapid international expansion also make it a compelling option, but its high valuation may make it less attractive for some investors.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/DASH/pressreleases/34061062/best-stock-to-buy-right-now-uber-vs-doordash/