Bill Ackman’s Investment in Uber Highlights Robotaxi Growth Potential

Billionaire Bill Ackman, CEO of Pershing Square Capital Management, has led a hedge fund that delivered a remarkable 210% return over the past five years. This contrasts with the S&P 500 (SNPINDEX: ^GSPC), which achieved a gain of 101% during the same timeframe. Given these impressive results, Ackman’s strategy is a compelling model for individual investors looking for insights.

Since January, Ackman has purchased over 30 million shares in a robotaxi Stock that has surged by 145% over the past two years. Contrary to expectations, this investment is not in Tesla, which plans to introduce an autonomous ride-sharing service in Austin this year. Instead, the Stock being acquired by Pershing Square is Uber Technologies (NYSE: UBER).

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here‘s what investors should consider.

Uber Dominates Ride-Sharing and Food Delivery Markets

According to Bloomberg, Uber operates the largest ride-sharing service and the second-largest restaurant food delivery service in the U.S. by revenue. The company maintains its position as the ride-sharing leader in nine other countries and dominates food delivery in seven nations.

This extensive scale gives Uber a significant edge in the market. The strong network effect associated with its platform led to a 14% increase in monthly active users and a 19% rise in trips last year. This growth indicates not only an expanding user base but also increased engagement with the platform.

The scale also enhances cost-effective user acquisition. For instance, 31% of first-time delivery trips originate from the mobility app, while 22% come from the delivery app. This cross-pollination of services is a strategy Uber is actively pursuing.

To further strengthen its consumer relationships, Uber introduced product innovations and the Uber One membership program, which saw a remarkable 60% growth in its member base, reaching 30 million people last year.

Uber Positioned for Success in Robotaxi Market

With its established leadership in the ride-sharing sector, Uber is well-suited to aggregate demand for firms with autonomous vehicle (AV) fleets. During the fourth-quarter earnings call, CEO Dana Khosrowshahi stated, “Uber is uniquely positioned to offer tremendous value for AV players looking to deploy their technology at scale.”

Uber has teamed up with 14 companies specializing in autonomous driving technology, including Alphabet‘s Waymo. This partnership began in October 2023, with Uber matching riders with Waymo robotaxis in Phoenix. The relationship expanded in April 2024 when Uber Eats began using Waymo’s technology for deliveries.

In March 2025, the collaboration resulted in robotaxis being introduced in Austin, likely as a competitive move against Tesla’s local operations. Additionally, Uber and Waymo plan to launch robotaxis in Atlanta soon. If these collaborations prove beneficial, they will reinforce Khosrowshahi’s assertion that Uber is “an indispensable partner for AV players.”

Looking ahead, Uber projects that the autonomous ride-sharing market will be worth $1 trillion in the U.S. alone. This forecast highlights Uber’s multitrillion-dollar market potential in robotaxis on a global scale.

Image source: Getty Images.

Uber Stock Continues to Offer Valuable Investment Opportunity

Uber’s fourth-quarter results showcased robust performance, with revenue increasing by 20% to $12 billion, driven by impressive sales growth in the mobility segment. Additionally, adjusted EBITDA surged by 44% to $1.8 billion, reflecting an improved take rate across both the mobility and delivery sectors.

As for future growth, Uber anticipates annual adjusted EBITDA growth will likely be in the high-30% to 40% range over the next three years. This outlook suggests comparable growth in adjusted earnings, making the current valuation of 17 times earnings appear quite justifiable. Investors may consider taking a small position in this promising robotaxi Stock now.

A Second Chance at a Potentially Lucrative Investment

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*Stock Advisor returns as of March 24, 2025

Suzanne Frey, an executive at Alphabet, services on The Motley Fool’s board of directors. Trevor Jennewine holds positions in Tesla. The Motley Fool has positions in and recommends Alphabet, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.