Uber Technologies Inc. (NASDAQ: UBER) is in focus this morning after the ride-hailing giant said it will spend about $700 million to acquire an 85% stake in Trendyol GO.
The Turkish food delivery platform will be accretive to Uber’s growth as soon as the transaction is complete, as per its securities filing on Tuesday.
“Uber and Trendyol GO coming together will elevate the delivery sector in Türkiye for consumers, couriers, restaurants, and retailers, especially small and family-owned businesses,” Dara Khosrowshahi, the chief executive of Uber Technologies, said in a press release today.
Uber shares are currently up some 30% versus their recent low.
Why is the Trendyol GO deal significant for Uber stock?
Uber expects the Trendyol GO transaction to complete in the back half of 2025 as long as it secures necessary regulatory and shareholder approvals.
“This deal reflects our long-term commitment to Türkiye, we’re incredibly impressed with what the Trendyol GO team has built, and we’re excited to continue that strong momentum across the country,” Khosrowshahi added in the release.
Trendyol Go currently has 19,000 couriers and 90,000 restaurants on its platform that delivered over 200 million orders last year to increase its gross bookings by about 50% on a year-over-year basis to $2 billion.
Following the news, Uber stock looks headed to print a new all-time high on Tuesday.
Uber to report its Q1 earnings on May 7th
Uber’s plans of acquiring an 85% stake in Trendyol GO arrive only a day before the mobility giant is scheduled to report its financial results for Q1.
According to StreetAccount, the NYSE-listed firm is expected to earn 51 cents on a per-share basis and record $11.6 billion in revenue for its fiscal first quarter.
Uber stock has done well in recent weeks, primarily because the San Francisco headquartered firm has made significant strides in autonomous driving, including teaming up with Volkswagen and Waymo.
Note that Uber shares do not currently pay a dividend, though.
Should you buy Uber shares today?
Despite a significant increase in Uber stock price over the past month, Wall Street remains bullish as ever on the multinational transportation company for 2025.
For example, analysts at the New York-based Evercore ISI expect the ride-hailing firm to hit $115 per share by the end of this year, indicating potential for another 35% from here.
Evercore is bullish on UBER as it has strong financials and a fortress-like balance sheet.
Plus, the ride-hailing company is committed to expanding its footprint in self-driving technology as well, which could help unlock significant upside in its shares moving forward.
Note that Statista expects the global autonomous car market to reach a valuation of about $62 billion in 2026, up sharply from $24 billion only at the end of 2021.
The post Uber to invest $700M for majority stake in Turkish food delivery firm Trendyol GO appeared first on Invezz