Two significant events have reinforced our conviction in Uber (UBER) as a long-term investment: the Q1 2025 Earnings Call and the Go-Get Product Event. These moments underscored Uber’s continued innovation, strong execution, and long growth runway.

Go-Get Event: Expanding the Everyday Utility of Uber

The Go-Get Event showcased Uber’s strategic focus on deepening its role in the everyday life of consumers. The product updates were impressively granular, user-centric, and tightly integrated with the existing Uber ecosystem — strengthening the platform’s marketplace moat.

Key highlights:

• Ride Passes: Incentivizing volume with “buy more, save more” bundling.
• Price Lock: Gives riders certainty by locking in future ride prices.
• Route Share: A communal, minivan-style ride option that increases affordability.
• Volkswagen Partnership: Launch of autonomous buses — Uber is actively positioning itself as the platform for both AVs and human drivers.
• Savings Slider: Helps users choose more cost-effective options within the app.
• Restaurant Reservations: Partnership with OpenTable extends Uber’s reach beyond transport and delivery.

The strategy here is clear — maximize value in the everyday. These incremental updates compound to increase user engagement, retention, and cross-product monetization.

Q1 Earnings Call: Sustained Growth, Extended Runway

Uber reported solid Q1 results:

• Revenue growth of 14% year-over-year (17% in constant currency).
• Soft guidance for 18–19% trip growth in Q2, pointing to continued momentum.

CEO Dara Khosrowshahi emphasized growth across several vectors:

• Expansion in less dense areas, driven by low-cost products (e.g., two- and three-wheelers).
• Taxi supply growth, with Uber still far from saturation in this segment.
• Shared rides and high-capacity vehicles, which reduce price points and improve efficiency.
• A strong and growing portfolio of adjacent products, many of which are outpacing the core business in growth.

Investment Thesis & Positioning

Our Uber thesis was built on a bargain-hunting opportunity around January 2025, when the stock traded at $65 due to widespread fears about the impact of autonomous vehicles (AVs). Our analysis concluded that these fears were overblown in the short- to medium-term, and that Uber was well-positioned to benefit from the AV transition — not be disrupted by it. Uber’s hybrid approach (merging AVs with human drivers on a unified platform) remains a compelling advantage.

We valued the stock at $96 per share based on our internal DCF completed in December 2024, and continue to see that valuation as reasonable given recent developments.

At present, Uber makes up 8% of our portfolio. In hindsight, we acknowledge we could have sized the position more aggressively — potentially double — given the strength of the thesis and the continued outperformance. We had another opportunity to increase our position during the April 2025 dip, but chose to wait until macroeconomic conditions became clearer before making further buying decisions.

DCF Attached: link