On November 5, following the release of Uber's third-quarter earnings report, Goldman Sachs reiterated its Buy rating and maintained a price target of $110. The investment bank believes that although Uber's mobility revenue in the third quarter fell short of expectations, the continued strong growth of its delivery business and the potential for further expansion in autonomous vehicle deployment will provide support for the company's long-term growth. Based on the latest share price of $69.87, the price target implies approximately 57% upside potential.
In terms of autonomous driving, Uber expects the number of driverless vehicles on its platform to increase from approximately 700 by the end of 2026 to 2,000 by the end of 2027.
On the mobility side, certain international markets were affected by insufficient driver supply, causing third-quarter revenue to fall below Goldman Sachs' and market expectations. However, management stated that the overall mobility business growth trend has already improved in October.
Regarding the delivery business, Uber's third-quarter gross bookings grew 23% year-over-year, primarily driven by increased Uber One membership activity and higher merchant investment. Among this, grocery and retail gross bookings grew approximately 40% year-over-year, and merchant spending on advertising and promotional activities has reached an annualized scale exceeding $10 billion.
Goldman Sachs noted that expanding user scale, rising Uber One membership penetration, and an increasing variety of platform services will continue to support Uber's long-term revenue growth and margin improvement.
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