Gross Bookings Strong at Uber: Is There Room for Further Upside?

Uber Technologies UBER, the ride-hailing giant based in San Francisco, CA, is benefiting from the upbeat gross bookings. The company’s gross bookings, for both the mobility and delivery segments, are increasing at healthy double-digit rates. This highlights the strong demand for its services.

In the first quarter of 2025, total gross bookings grew 14% year over year and 18% on a constant currency basis at the same period. Double-digit growth was witnessed across its key segments. Gross bookings at the mobility segment grew 13% year over year and 20% on a constant currency basis during the same period. This key metric registered year-over-year growth of 15% (18% on a constant currency basis) at the delivery segment.

Despite currency-related headwinds, Uber’s strong performance concerning gross bookings is likely to continue in the June quarter as well. Uber expects gross bookings in the June quarter in the $45.75-$47.25 billion band, indicating growth of 16-20% on a constant-currency basis from second-quarter 2024 actuals. Our estimate for second-quarter 2025 gross bookings is pegged at $45.7 billion. Strong gross bookings growth in the June quarter is likely to have kept Uber’s top line in good shape.

Comparable Metrics of Other Ride-Hailing Entities

Gross bookings are strong at rival Lyft LYFT as well, mainly owing to the growing active rider base, expansion into new markets and the success of its customer-friendly "Price Lock" feature. In the March quarter, gross bookings increased 13% year over year to $4.6 billion. Management stated that this was the 16th consecutive quarter where Lyft demonstrated double-digit year-on-year growth in the key metric. The uptick was driven by the record active riders of 24.4 million. Active riders increased 11% year over year in the quarter.

The total number of rides in the quarter reached a first-quarter record of 218.4 million, reflecting a year-over-year increase of 16%. For the second quarter of 2025, Lyft expects gross bookings in the $4.41-$4.57 billion range, indicating 10-14% growth from second-quarter 2024 actuals.

Singapore-based Grab GRAB is benefiting from strong growth in its On-Demand Gross Merchandise Value (“GMV”). On-Demand GMV refers to the sum of GMV of the mobility and deliveries segments. In the first quarter of 2025, On-Demand GMV increased 16% year over year at Grab. Grab expects 2025 revenues between $3.33 billion and $3.40 billion, indicating 19-22% year-over-year growth.

Uber’s Price Performance, Valuation and Estimates

Shares of UBER have gained 55.7% so far this year against the Zacks Internet-Services industry’s 2.7% decline in the same timeframe.

From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 3.58X. UBER is inexpensive compared with its industry.

The Zacks Consensus Estimate for UBER’s 2025 and 2026 earnings has been revised upward over the past 60 days.

UBER's Zacks Rank

UBER currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research