Uber investors ignore threats from Tesla and Waymo. What are analysts warning them about?

Uber investors ignore risks from competitors with drones. The company's papers grew by almost 60% and updated the record. Despite the fact that Uber is expanding its business - adding food and alcohol delivery, entering new markets, analysts are still doubtful: competition with Waymo and Tesla could become a threat. Some experts believe that Uber's strategy may work, but also do not expect significant growth.

Uber investors are ignoring potential threats from rivals in the unmanned cab space and betting that the company still has plenty of near-term growth opportunities, writes Bloomberg.  

Uber's shares have surged nearly 60% this year to a record high on the back of partnerships with robotaxi startups such as Waymo (a subsidiary of Alphabet) and expansion into new markets. That success has given Uber the seventh highest stock return among S&P 500 companies in 2025, the agency notes. 

About 80% of analysts (45 out of 57) who report on Uber have buy-equivalent ratings (Buy and Overweight). However, the rest remain cautious and see a neutral rating (equivalent to a "hold" recommendation) as more appropriate in the short term, Bloomberg notes. Uber's business expansion has failed to fully dispel concerns about the long-term risks of competition from unmanned cab services such as Waymo, which operates independently in three cities - San Francisco, Phoenix and Los Angeles - and partners with Uber in Austin and Atlanta. In addition, Tesla is developing a similar trend - in June, it began testing such a service in Austin;

"There's a gradually growing view among investors that, regardless of how competition develops, Uber is the one that controls the customer relationship in mobility. I would question that when it comes to the future of the company," said Northwestern Mutual Wealth Management chief equity portfolio manager Matt Stuckey.

David Wagner, portfolio manager at Aptus Capital Advisors, positively assesses Uber's strategy of partnering with competitors in the unmanned transportation industry. He remains optimistic about the company, although he does not expect the stock to grow significantly in the near term due to the lack of obvious drivers.

"The market is finally starting to recognize that it is better to support this particular aggregator approach and reward such a company," he said.

Canaccord analyst George Gianarikas acknowledges that Uber's strategy of partnering with different unmanned transportation services could prove successful, but believes the risks are still too serious to ignore.

"Another scenario is also possible: a new world in which a few autonomous car giants have complete control of the entire value chain. We remain flexible and prepared for any outcome, but given the uncertainty and risk of rapid market transformation, we believe a neutral rating is the most appropriate near-term assessment," he said in a research note late last month.

Uber has been investing in new areas within its core transportation and delivery business both in the U.S. and abroad for years, which has helped support revenue growth that is expected to be 15% in 2025, Bloomberg writes. In addition, the company has closed more than a dozen partnerships with automakers and technology developers around the world.

This article was AI-translated and verified by a human editor