Uber Technologies launched robotaxi passenger rides in Dubai in partnership with WeRide, a Chinese autonomous vehicle company, accessible through the Uber app in popular tourist districts. This follows a similar launch in Abu Dhabi and marks the first commercial driverless robotaxi offering in the Middle East. Uber’s AV ambitions align with a growing global AV market projected to reach over $2.3 trillion by 2030.

Uber continues to see robust growth in gross bookings, with its Mobility and Delivery segments posting strong double-digit increases. The company’s Delivery business saw segmental revenues grow 27% year over year, with total gross bookings jumping 21% to $48.7 billion. Uber expects fourth-quarter 2025 gross bookings to reach $52.25-$53.75 billion, representing growth of 17% to 21% year over year.

Despite its AV ambitions and growth in gross bookings, Uber’s stock is undervalued compared to the industry average. However, the company faces headwinds such as unimpressive price performance and a high debt load. Investors are encouraged to hold onto their shares to capitalize on long-term fundamentals, while potential investors may want to wait for a more attractive entry point. Uber currently has a Zacks Rank #3 (Hold).

Uber’s expansion efforts include diversifying into food delivery and freight. The company recently announced a nationwide partnership with ALDI, offering its selection of products on Uber Eats. Despite some challenges, Uber’s increasing demand and growth initiatives position it well for long-term success. Investors are advised to consider the company’s strong business performance and growth initiatives.

Read more at Nasdaq: Should You Buy UBER Stock Following Its AV Expansion in the UAE?