This Analyst Sees More Than 25% Upside In Uber Thanks To Increased Food Delivery Penetration

Oppenheimer analyst raised the price target at Uber Technologies, Inc. UBER to $95 (from $90) and maintained an Outperform rating.  

The analyst performed a survey that indicates a significant opportunity for restaurant delivery.

The analyst writes that despite economic pressures, 71% of non-users are unaware of savings from monthly subscriptions, highlighting the potential for new user acquisition through better marketing.

Grocery delivery lags behind restaurant delivery by ten percentage points (57% vs. 67%), with 73% preferring in-person shopping.

Based on favorable restaurant delivery trends, the analyst raised the 2025 estimated delivery share gains to 58 basis points, up from the previous 46 basis points.

Consequently, the analyst increased Uber Delivery gross transaction value (GTV) by 2% for 2025 and 2026 to account for greater frequency opportunities and anticipated consumer tailwinds from expected rate cuts in 2025.

Friday, Uber partnered with Spirit Halloween for on-demand delivery, offering discounts and perks for Uber One members during Halloween season.

Investors can gain exposure to the stock via iShares Trust iShares U.S. Transportation ETF IYT and Franklin Disruptive Commerce ETF BUYZ.

Price Action: UBER shares closed lower by 1.73% to $75.75 on Friday.

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