Uber's Mobility strategy supports margin growth, Jefferies says

What Brokers Say Tech Written by: Ian Lyall 13:30 Thu 24 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Uber Technologies Inc ( NYSE:UBER XETRA:UT8 ) View Price & Profile Uber’s Mobility strategy supports margin growth, Jefferies says Published: 13:30 24 Sep 2026 EDT Jefferies reiterated its $110 price target on Uber Technologies Inc (NYSE:UBER, XETRA:UT8) and maintained the company as its ‘Franchise Pick’, saying its expanding Mobility product suite can support faster bookings growth while allowing margins to expand. The broker raised its estimates after a detailed analysis of Uber’s Mobility products, maintaining the company as its ‘Franchise Pick’ as stronger earnings growth could support higher valuation multiples. Jefferies expects Uber’s adjusted EBITDA to grow by more than 25% through 2028, driven by increasing adoption of premium products and greater scale across newer Mobility offerings. Uber has expanded its Mobility portfolio from two products in 2011 to about 20 currently, allowing it to target additional use cases and increase customer frequency through users adopting multiple services. Jefferies grouped newer offerings, including Reserve, taxis, two- and three-wheelers, UberX Share and autonomous vehicles into a category it calls New Bets, which it expects to become an increasingly important source of bookings growth. Jefferies said Uber’s ‘barbell strategy’, combining rapid adoption of premium, higher-margin products with increasing scale across lower-cost offerings, is supporting faster bookings growth without sacrificing margin expansion. The broker estimates New Bets generated about $20 billion in Mobility bookings in 2025, representing 21% of the segment, and forecasts the category will grow at more than 30% annually through 2028. Jefferies estimates New Bets could account for about 45% of total Mobility bookings growth through 2028, with each additional 1% of New Bets growth contributing more than 25 basis points to overall Mobility growth. The broker expects the newer products to support margins rather than weigh on profitability, forecasting New Bets’ EBIT margin to increase from 4.3% in 2025 to 5.6% in 2028. Jefferies expects premium products to account for about two-thirds of incremental Mobility bookings outside UberX, helping offset margin pressure from lower-priced offerings and autonomous vehicle investment. Uber for Business bookings are growing about 40% year on year, with more than half of trips involving premium offerings, providing another channel for higher-margin products. Jefferies raised its fiscal 2027 EBITDA estimate by 2% to $14.5 billion, about 4% above consensus, as it expects sustainable bookings growth and progress in scaling US autonomous vehicle operations to support Uber’s earnings trajectory. Continue reading