Uber's Gross Bookings Are Up 25% and It Just Launched an Autonomous Vehicle Unit. Is This the Transportation Stock to Own in 2026?

Investors initially liked Uber Technology's (NYSE: UBER) first-quarter results. After reporting earnings on May 6, the stock shot up 8.5%, to close at $79.17. However, the share price has subsequently fallen.

But long-term investors shouldn't concern themselves with day-to-day trading. However, you can look at quarterly results to determine the company's trend and whether it's heading in the right direction.

It's time to look closer at Uber's results and future prospects.

Image source: Getty Images.

Positive results

Uber consists of mobility (connecting riders with drivers), delivery (picking up and delivering food), and freight (connecting shippers and carriers). Mobility remains the largest revenue source, accounting for 56% of the company's first-quarter top line. Delivery is also responsible for a significant share, including 33% of the period's revenue.

The company continued to grow key metrics. This includes gross bookings, which gained 25% year over year, to $53.7 billion. The growth was driven by the mobility and delivery divisions' 25% and 28% growth, respectively.

This helped push Uber's revenue 10% higher after removing foreign-currency translations, to $13.2 billion. It's also a very profitable company, with operating income under generally accepted accounting principles (GAAP) jumping 57% to $1.9 billion.

Is autonomous driving a game changer?

The company continued its push into autonomous vehicles, launching Uber Autonomous Solutions, which it hopes will help partners over the top to build and commercialize fleets that Uber will use.

It has made significant investments in self-driving cars, including a significant equity stake in Lucid Motors. Clearly, Uber believes in the technology.

If it can eliminate drivers, Uber will save a lot of money, vastly improving profitability. Cost of revenue, which includes drivers' pay, is the company's largest expense.

Still, it's worth noting that there have been hurdles in implementing self-driving autos. For instance, Apple abandoned its years-long effort to build a self-driving car. Alphabet operates its self-driving cars in select markets, but it's working out the kinks. Tesla has also been pushing into the area.

The big commitment is likely a major reason why Uber's stock has underperformed the market. The shares have lost 14.7% over the last year, through June 21. During this period, the S&P 500 index returned 26.7%, including dividends.

Still, with the company's core mobility and delivery businesses growing, I'd use the price dip as an opportunity to buy Uber's shares despite challenges in the autonomous vehicle arena.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy.