Here's Why Uber's Crown Taxi Acquisition Really Matters

Uber Technologies UBER aims to acquire Crown Taxi, a leading local fleet dispatcher, in a bid to expand its footprint in Taiwan. While the financial terms of the deal were not disclosed, the acquisition is indicative of Uber’s long-term commitment to the market of Taiwan. The deal is, however, subject to regulatory approval.

Crown Taxi, established in 2011, has earned a strong reputation for innovation and service quality. The company has partnered with Uber since 2017 by dispatching drivers through the Uber platform. With this acquisition, Uber expects to offer Crown Taxi’s professional drivers a more seamless work experience while boosting ride availability in regions with limited transportation options. By integrating Crown Taxi’s fleet and operational network, Uber is positioning itself to better serve Taiwan’s evolving mobility needs.

The move aligns with Uber’s broader strategy of deepening market presence through local partnerships and acquisitions and is aimed at enhancing its operational capabilities and service reach in one of Asia’s most competitive ride-hailing markets. The Crown Taxi acquisition is in line with Uber’s strategy of expanding its international presence by acquiring local taxi operators worldwide. Uber’s endeavors to expand into international markets are commendable and provide it with the benefits of geographical diversification. Prudent investments enable Uber to extend services and solidify its comprehensive offerings.

Expansion Attracts Interest From Other Ride-hailing Operators

Uber’s rival Lyft LYFT also recently announced plans to expand in Europe. To this end, Lyft entered into a definitive agreement to acquire FREENOW, a Germany-based mobility platform, for approximately €175 million or $197 million in cash. The transaction is expected to close in the second half of 2025, subject to customary closing conditions. The strategic acquisition is in sync with Lyft’s disciplined capital allocation strategy of investing in attractive growth opportunities with a customer-friendly approach.

Grab GRAB provides ride-hailing services across eight countries in Southeast Asia. Recently, the company has announced its plan to raise $1.25 billion through a convertible bond offering. In a bid to increase financial flexibility and support long-term growth initiatives, Grab intends to issue senior notes due in 2030. The proceeds are expected to be used by Grab for a mix of corporate purposes, including potential acquisitions.

UBER’s Price Performance, Valuation and Estimates

Shares of Uber have gained 44.6% in the past six months, outperforming the Zacks Internet-Services industry’s 3.8% decline in the same time frame.

Six-Month Price Comparison

From a valuation perspective, Uber is relatively expensive. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 27.34, which is up from the industry’s 18.98. The company has a Value Score of D.

The Zacks Consensus Estimate for Uber’s 2025 and 2026 earnings has been revised upward over the past 60 days.

UBER's Zacks Rank

UBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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