How to Play UBER Stock Following the Delivery Deal With Five Below
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Uber Technologies UBER inked a deal with value retailer Five Below FIVE in a customer-friendly move. The deal makes customers of Five Below eligible to use the Uber Eats app for placing orders for delivery from more than 1,500 stores of the discount retailer. The delivery will be made directly to their doorsteps. This indicates the customer-friendly nature of the deal. Uber Eats is the online food ordering and delivery platform of Uber.
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This partnership allows customers to shop for a range of budget-friendly, trending items, including toys, games, candy, crafts, tech, room décor, beauty and graphic T-shirts. They will be available without any delivery fee for members of the Uber One loyalty program.
The partnership with Five Below is in sync with Uber Eats’ strategy to grow its non-food retail offerings, thereby providing consumers access to a wider range of goods beyond traditional meal delivery. The move also supports Uber’s aim to enable retailers to tap into digital commerce and enhance customer reach through efficient delivery solutions.
However, does this move by UBER make the stock worth betting on? Let’s delve deeper to answer the question.
Factors Working in Uber’s Favor
Impressive Price Performance: Uber has navigated the recent tariff-induced stock market volatility well, registering a 40.4% year-to-date gain and performing better than the S&P 500 index, the Zacks Internet-Services industry, and rival Lyft LYFT in the same timeframe.
YTD Price Comparison
Image Source: Zacks Investment Research
Over the past year as well, Uber shares have performed much better than Lyft.
Impressive Earnings History: Uber surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, the average beat being 212.3%.
Uber Technologies Price and EPS Surprise
Uber Technologies, Inc. price-eps-surprise | Uber Technologies, Inc. Quote
Focus on Lucrative Robotaxi Market: Uber aims to gain a stronghold in the highly promising robotaxi market through strategic partnerships. The above association is a step on that front. By adopting this approach, Uber has avoided massive R&D costs associated with developing autonomous systems independently. With its vast network of drivers and customers, UBER can quickly scale autonomous services once the technology matures. Uber’s rival in the ride-sharing market, Lyft, is also aiming to be a key player in the lucrative and emerging autonomous vehicle market, highlighting the immense competition in the space. The global robotaxi market, which was valued at $0.4 billion in 2023, is projected to reach $45.7 billion by 2030 at a CAGR of 91.8% from 2025 to 2030.