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Summary

Uber wisely walked away from an Instacart acquisition, favoring buybacks over a full-priced deal that would stretch its balance sheet.

At $66.70, UBER trades at a 7.4% free cash flow yield, 14x trailing EBITDA, and is growing gross bookings 24%, making it undervalued versus peers.

Management is executing a $15.7B buyback, which offers a higher return than an Instacart deal and supports a fair value target of $80–$90 per share.

Key risks include rapid robotaxi cost declines and further large acquisitions, but most AV makers are likely to partner with UBER rather than compete directly.

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A Deal Uber Did Not Take

On Friday, October 23, The Information reported that Instacart (Maplebear) ( CART ) had hired a bank to look at a sale and had held early talks with Uber (

Analyst’s Disclosure: I/we have a beneficial long position in the shares of UBER either through stock ownership, options, or other derivatives.…