Why Bill Ackman Is All-In on Uber

Uber controls as much as 75% of the U.S. ridesharing market, while Lyft holds roughly 25%.

This dominance creates a powerful network effect, more riders attract more drivers, which in turn attracts even more riders. That feedback loop makes Uber’s position extremely difficult to challenge.

Ackman prefers companies with natural barriers to entry, and Uber’s moat is reinforced by scale, data, and regulatory complexity. Building a rival network of drivers and customers would require enormous spending and years of execution. In short, Uber has already won the hard part.

Key Points

• He made it his largest holding, betting on Uber’s global scale, powerful network effects, and high barriers to entry.
• Under Dara Khosrowshahi, the company has become a cash machine—17 straight quarters of revenue growth and $8.5 billion in free cash flow over the past year.
• Even after its rally, Uber trades at modest valuations, is buying back $20 billion in shares, and remains a compounding story with years of growth ahead.

A Leadership Turnaround

Under CEO Dara Khosrowshahi, Uber has gone from a cash-burning startup to a disciplined, cash-generating platform.

He has reined in costs, improved regulatory relationships, and focused on free-cash-flow growth.

For Ackman, who invests heavily in great management teams, that transformation was crucial.

The Platform Play

Uber today is far more than ride-hailing. Uber Eats and its grocery delivery business have become major revenue drivers, while Uber Freight extends the same logistics network into shipping and transport.

The company now processes well over $150 billion in annual gross bookings, a scale that gives it pricing power and operating leverage.

Concerns about Tesla’s future robotaxi fleet don’t appear to worry Ackman. Uber could actually benefit from autonomous driving by becoming the platform that dispatches these vehicles, much like it does for human drivers today. The company’s partnership with Waymo already points in that direction.

Strong Financials + Cash Flow

Uber’s results have been exceptional. It has posted seventeen straight quarters of revenue growth and five consecutive quarters of positive earnings.

In Q2, sales rose 18% year-over-year to $12.7 billion, with free cash flow up 44% to $1.7 billion. Over the past 12 months, Uber generated almost $9 billion in free cash flow, a stunning figure. It also maintains a strong balance sheet, with over $6 billion in cash.

For Ackman, that combination, predictable cash flow, high returns, and a clean balance sheet, ticks nearly every box of his investing checklist.

Is Uber Still a Buy?

Ackman’s average purchase price was around $20 lower. Even so, the stock’s valuation remains reasonable at about 16 times trailing earnings and 23x operating cash flow, modest by tech-sector standards.

Analysts still see upside. The consensus 12-month target is roughly $108, suggesting potential gains of about 18%. Notably, no major analyst currently rates the stock a sell.

Uber is also rewarding shareholders aggressively. It repurchased nearly $1.5 billion in stock last quarter and announced a $20 billion buyback, over 10% of its market cap.

The Bottom Line

Uber now checks nearly every box Bill Ackman looks for, including a leading market position, strong leadership, scalable economics, and a fortress balance sheet. While it’s no longer the bargain it was when Ackman bought in, the long-term story remains compelling.

Uber is evolving into a powerful logistics platform with multiple profit engines, from rides to delivery to freight, and could continue compounding value for years. For long-term investors, it still looks like a business built to outperform.