Bill Ackman's Bold Bet: Why Uber Is His Top Holding

Core Viewpoint - Uber Technologies has transformed from a cash-burning company to a profitable entity, attracting significant investment interest, particularly from billionaire investor Bill Ackman, who has made Uber his largest holding [1][2][3]. Financial Performance - In Q1 2025, Uber reported a revenue increase of 14% year-over-year to $11.5 billion, with adjusted EBITDA rising 35% to $1.9 billion and net income reaching $1.8 billion [5][6]. - Over the trailing 12 months, Uber generated nearly $8 billion in free cash flow and ended the quarter with $6.0 billion in cash and short-term investments [6]. Business Segments - Uber's revenue from mobility (ride-hailing) was $21.2 billion, while delivery revenue (primarily from Uber Eats) was $20.4 billion, with gross bookings for mobility and delivery rising 20% and 18% year-over-year, respectively [7][8]. Investment Confidence - Bill Ackman purchased 30.3 million shares of Uber, worth around $2 billion, representing 18.5% of his investment firm's U.S.-traded equity assets, indicating strong confidence in Uber's management and business model [9][10]. Strategic Partnerships - Uber has shifted its strategy regarding autonomous vehicles, opting for partnerships with companies like Waymo and Aurora instead of developing its own technology, which reduces costs and risks while tapping into a potentially lucrative market [11][12]. Market Position - Uber's platform-first model in the autonomous vehicle space could provide a competitive advantage, allowing it to be the primary platform for consumers to access self-driving vehicles without needing to own the technology [13]. Long-term Outlook - Ackman's significant investment signals confidence in Uber's future growth potential, suggesting that despite a 200% stock surge over the last three years, there may still be room for further appreciation [14][15].