Uber Technologies, Inc. (UBER): A Bull Case Theory

We came across a bullish thesis on Uber Technologies, Inc. on Platform Aeronaut’s Substack by Thomas Reiner. In this article, we will summarize the bulls’ thesis on UBER. Uber Technologies, Inc.'s share was trading at $86.57 as of December 1st. UBER’s trailing and forward P/E were 11.27 and 21.05 respectively according to Yahoo Finance.

Uber Technologies is piloting a program that transforms its Driver app into a platform for AI-related microtasks, allowing drivers and couriers in the U.S. to perform small “digital tasks” like labeling data, uploading photos, or recording voice clips between rides. This initiative represents Uber’s classic marketplace playbook: harness underutilized supply, integrate it into the product ecosystem, and route demand through a scalable platform. The model converts idle driver time into productive AI training work, offering Uber a new, capital-light revenue stream that complements its mobility and delivery businesses without cannibalizing core operations.

The potential scale is significant. With roughly 8.8 million drivers completing around 33 million trips per day, even minimal participation—say, 5% of active drivers contributing 10 minutes daily—could yield millions of high-quality labeled data units, rivaling specialized annotation firms or Mechanical Turk in volume and reliability. While current revenue impact is modest relative to Uber’s $12 billion quarterly topline, the initiative’s unit economics are attractive, benefiting from Uber’s built-in identity verification, anti-fraud systems, and absence of logistical costs. Strategically, it enhances Uber’s data and AI capabilities, improving maps, autonomous vehicle safety, and product testing.

If scaled, this “AI work layer” could emerge as a durable, counter-cyclical revenue source that monetizes downtime across Uber’s vast driver network. Though execution risks remain—particularly around task quality, fair compensation, and potential driver distraction—the concept aligns with Uber’s brand of flexible work and operational efficiency, potentially creating a defensible data operations moat as autonomous technologies expand.

Previously we covered a bullish thesis on Uber Technologies, Inc. (UBER) by Quality Equities in March 2025, which highlighted Uber’s network effects, improving profitability, and expansion into autonomous vehicles. The company’s stock price has appreciated approximately by 14.49% since our coverage. The thesis still stands as Uber scales new initiatives. Thomas Reiner shares a similar but emphasizes on AI-driven digital task monetization.

Uber Technologies, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 152 hedge fund portfolios held UBER at the end of the second quarter which was 145 in the previous quarter. While we acknowledge the potential of UBER as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.