Uber robotaxi expansion faces partner and regulatory hurdles
Uber Technologies management plans to become the world's leading platform for autonomous vehicle rides, relying on external car makers and regulatory approval to execute a strategy that currently accounts for less than 0.5% of weekly trips. The company stated on its August earnings call that it is looking to deliver 120,000 vehicle commitments over the next few years, aiming to allow autonomous vehicle manufacturers to reach riders through the Uber app.
Uber Technologies management plans to become the world's leading platform for autonomous vehicle rides, relying on external car makers and regulatory approval to execute a strategy that currently accounts for less than 0.5% of weekly trips. The company stated on its August earnings call that it is looking to deliver 120,000 vehicle commitments over the next few years, aiming to allow autonomous vehicle manufacturers to reach riders through the Uber app.
The execution of this plan depends on partners that management does not control. Questions raised during the call referenced press reports concerning Uber's relationship with Waymo and the delivery capabilities of Lucid. Management responded that the company does not want to depend on a single partner, noting that it sees many newer players entering the field. Regulatory approval presents a separate constraint. Management identified job loss, safety, and congestion as primary concerns, stating that the company sometimes has to slow down to achieve sustainable rules for driverless cars.
The ride-hailing business remains the core financial engine for the company. Mobility revenue reached $29.7 billion in fiscal 2025, representing 57% of total company revenue. This segment grew by 18.3% in fiscal 2025, a slowdown from the 26.5% growth recorded in fiscal 2024. Because the autonomous vehicle strategy directly impacts this segment, any failure by car makers to deliver or delays in regulatory approval could affect the portion of the business that generates the majority of income.
Current trading multiples suggest investors are pricing in slower future growth. Uber stock closed at 29.8% below its highest close from the past year on October 19, 2026, which was set on November 3, 2025. The stock trades at 2.6 times sales, compared to 3.1 for the S&P 500. While Uber's revenue grew at an average annual rate of 16.4% over its last three twelve-month periods, that figure exceeds the S&P 500 average of 5.9%. The current valuation appears to assume that this higher growth rate will not continue.
The financial impact of the valuation is complicated by recent earnings figures. Uber's stock trades at a trailing multiple of 14.9 times earnings, against 22.9 for the S&P 500. However, a one-time tax benefit heavily skewed the results for the quarter ending September 30, 2025, contributing $6.63 billion to the company's total profit of $9.58 billion for that period. This temporary gain means the adjusted multiple is significantly higher than the headline number suggests.
Management described its $10 billion spending on driverless cars as an investment over several years. While driverless cars currently make hundreds of thousands of trips a week out of roughly 300 million total weekly trips, the small current share does not determine future growth rates. The next key data point for investors is the Mobility revenue growth figure in the third-quarter report, expected on or around November 4, 2026.