Best Stock to Buy Right Now: Uber vs. Lyft?

Jeremy Bowman, The Motley Fool

Wed, Apr 2, 2025, 5:05 AM 5 min read

When it comes to ride-sharing successful the U.S., determination are lone 2 choices for consumers and investors: Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT).

The 2 companies person been rivals since their aboriginal days, and portion Uber has agelong been the marketplace leader, Lyft has been a dependable innovator successful the abstraction and held its ain contempt predictions that it would autumn by the wayside.

Investors funny successful the ride-sharing manufacture are apt to take 1 oregon adjacent some of these companies, arsenic they're exposed to the aforesaid benignant of opportunities. Taking a look astatine the 2 stocks broadside by side, let's find which is the amended bargain today.

There are 2 superior differences betwixt Uber and Lyft. The archetypal is that Uber is simply a planetary company. It operates successful implicit 70 countries worldwide, and the institution aggressively expanded successful its aboriginal years, seizing the accidental to drawback a first-mover vantage successful the industry.

Uber has pulled backmost from immoderate markets, arsenic the institution decided a fewer years agone that it would lone vie successful markets wherever it was No. 1 oregon No. 2 successful ride-hailing. Scaling backmost its planetary ambitions has helped thrust profitability astatine the company.

Lyft, connected the different hand, lone operates successful the U.S. and Canada. A assortment of reasons look to person kept Lyft from expanding extracurricular of North America, including a currency crunch, a hard regulatory environment, and a strategical determination to bash so. The institution seemed to reason that warring for marketplace stock successful now-established planetary markets was not worthy the clip oregon investment.

The different large quality is that Uber has a nutrient transportation business, Uber Eats, portion Lyft ne'er expanded to nutrient delivery, though it has partnered with DoorDash on immoderate promotions. Lyft has said that nutrient transportation is against its halfway ngo of getting radical wherever they privation to go.

Both companies person micro-mobility businesses, including scooters and bikes, and person formed partnerships successful autonomous vehicles. Uber has teamed up with Alphabet's Waymo, portion Lyft precocious formed a concern with Mobileye, arsenic good arsenic May Mobility and Nexar.

Due to its planetary presence, vulnerability to nutrient delivery, and larger marketplace stock successful the U.S., Uber is overmuch bigger than Lyft.

In 2024, Uber reported gross of $44 billion, up 18% from the twelvemonth before, portion gross bookings roseate by the aforesaid percent to $162.7 billion. Uber's profitability has besides importantly improved successful caller years, since it's pulled backmost from unprofitable markets and reached a détente with rivals similar Lyft and DoorDash, arsenic the institution has scaled backmost connected operator and rider incentives.