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UBER Expands Mastercard Deal: Is the Growth Story Strengthening?
ZACKSยท 2025-07-29 15:01
Core Insights - Uber Technologies has expanded its partnership with Mastercard to enhance payment processes for drivers, couriers, and consumers, while also improving benefits for cardholders [1][4] - The collaboration includes the integration of multiple Mastercard products, such as Mastercard Move for real-time payouts and Mastercard Gateway for secure business operations [2] - The Uber Pro Card, which allows for instant, no-cost payments and cash-back rewards, will expand from the U.S. and Canada to new regions like the United Kingdom [3][4] Partnership Details - The renewed collaboration aims to streamline payment experiences and support Uber's growth by enhancing operational efficiency and geographic reach [4][5] - Lyft, a competitor in the ride-hailing market, also has a partnership with Mastercard, providing benefits like instant payouts for drivers and rewards for riders [5][6] Financial Performance - Uber's shares have increased by 50.2% year-to-date, significantly outperforming the Zacks Internet-Services industry's 3.8% rise [7] - The company trades at a 12-month forward price-to-sales ratio of 3.43X, indicating it is relatively inexpensive compared to its industry [11] - The Zacks Consensus Estimate for Uber's earnings for 2025 and 2026 has been revised upward over the past 60 days, reflecting positive market sentiment [12]