Potential Phenomenal Stock with Possibilities to Outshine Tesla in Approaching $10 Trillion Market
In the rapidly evolving world of transportation, Uber Technologies is positioning itself as a key player in the shift towards self-driving vehicles. With a vast ride-hailing network already in place, the company is poised to capitalise on the potential $10 trillion autonomous vehicle industry predicted by Ark Investment Management.
Uber's CEO, Dara Khosrowshahi, has stated that the company has the necessary infrastructure to help companies deploy their autonomous vehicles. This infrastructure, built over 15 years of experience, can manage utilization in various cities and handle quiet periods effectively.
Uber's advantage lies in its vast user base. With 180 million monthly users for ride-hailing, food delivery, and commercial freight services, the company has a solid foundation for building a ride-hailing network.
Some of the biggest autonomous vehicle developers are choosing Uber's platform to commercialize their technologies. Waymo, one of Uber's partners, is completing over 250,000 paid autonomous trips every week in the U.S. through a combination of its own ride-hailing platform and Uber's. Uber's list of autonomous partnerships continues to expand, suggesting a growing interest in collaborating with the company.
Uber welcomed Baidu as a new partner in Q2, whose Apollo Go robotaxi service has completed over 11 million autonomous trips in total across Asia and the Middle East. Uber had 20 autonomous vehicle developer partners at the end of Q2, up from 18 in the first quarter.
However, it's worth noting that Tesla, one of the leading developers of self-driving cars, has also launched a supervised ride-hailing service in the U.S. as a test run for its Cybercab robotaxi. Despite this, Tesla's full self-driving software isn't approved for unsupervised use anywhere in the world, and the autonomous ride-hailing service it launched in June requires full supervision.
Investors looking to profit from the autonomous revolution might find investing in Uber stock appealing. With a price-to-earnings (P/E) ratio of 15.8, Uber's stock is cheaper than Tesla's P/E ratio of 186.3, potentially opening the door to significant upside. Uber's stock also trades at a price-to-sales (P/S) ratio of 4.2, making it cheaper than Tesla's P/S ratio of 12.4.
During the second quarter of 2025, Uber's active drivers earned a combined $20.8 billion, which was the largest component of its $46.7 billion in gross bookings. The company also has processes in place to handle fare disputes, insurance claims, and lost item returns, which are essential services for ride-hailing platforms.
As the race towards autonomous vehicles heats up, Uber is making strategic moves to establish itself as a key player in this new industry. With its vast user base, growing list of partnerships, and lower valuation compared to competitors, Uber could indeed offer a promising investment opportunity for those looking to profit from the autonomous revolution.
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