Best Stock to Buy Right Now: Uber vs. Archer Aviation

At first glance, Uber (NYSE: UBER) and Archer Aviation (NYSE: ACHR) might seem like completely different companies. Uber is the world's leading provider of ride-hailing services, while Archer Aviation is a fledgling builder of electric vertical take-off and landing (eVTOL) aircraft.

However, Uber once developed its own eVTOL aircraft through its Elevate division, which it sold to Archer's chief competitor Joby Aviation in late 2020. Joby plans to eventually offer air-taxi rides on its aircraft through Uber's app.

Image source: Archer Aviation.

Archer plans to launch its own first-party air-taxi service within the next two years and expects those rides to cost roughly the same as Uber's premium UberBlack service. It's already secured a spot as the official air-taxi service of the 2028 L.A. Olympics to promote those rides.

While Uber and Archer aren't competitors yet, their interests could overlap in the near future. However, since the beginning of 2025, Uber's stock rallied about 50%, as Archer's stock fell roughly 25%. Let's see why the ride-sharing king outperformed the eVTOL developer -- and if it will remain the stronger investment for the foreseeable future.

Uber's business is firing on all cylinders

Uber went public in 2019 but suffered a severe slowdown in 2020 as the pandemic disrupted its core ride-hailing business. That pressure offset the robust growth of its food-delivery platform Uber Eats, which thrived throughout the crisis as more restaurants ramped up their deliveries.

But from 2020 to 2024, four things happened for the company:

• Its number of monthly active platform consumers (MAPCs) soared from 93 million to 171 million.
• Its number of trips more than doubled from 5 billion to 11.3 billion.
• Gross bookings nearly tripled from $57.9 billion to $162.8 billion.
• Annual revenue almost quadrupled from $11.1 billion to $44 billion.

Uber maintained that impressive momentum over the past year. In the first nine months of 2025:

• MAPCs rose 17% year over year to 189 million.
• Its number of trips grew 20% to 9.8 billion.
• Gross bookings increased 17% to $139.3 billion.
• Total revenue climbed 18% to $37.7 billion.

That explosive growth was driven by Uber's market-share gains against smaller competitors like Lyft, its overseas expansion (especially in Latin America and Asia), and the launch of its sticky Uber One subscription platform in 2021. Its total number of Uber One subscribers rose 60% to 30 million in 2024 and continued rising to 36 million in the third quarter of 2025. As it expanded, it streamlined its business by cutting costs, pruning its workforce, and divesting its non-core assets.

From 2024 to 2027, analysts expect Uber's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at a compound annual growth rate (CAGR) of 16% and 27%, respectively. With an enterprise value of $193 billion, Uber stock still looks reasonably valued at three times next year's sales and 17 times adjusted EBITDA.

Archer still needs to scale up its business

Archer went public by merging with a special purpose acquisition company (SPAC) in 2021 but hasn't generated any meaningful revenue yet. Its Midnight aircraft can carry a single pilot and four passengers, travel up to 100 miles on a single charge, and reach a maximum speed of 150 miles per hour. Its drone-like design makes it easier to land in urban areas than traditional helicopters and makes it well-suited for short-range air-taxi services.

Archer delivered its first aircraft to the U.S. Air Force (USAF) for its first test flights last year. It also recently completed its initial test flights in Abu Dhabi and expects the Federal Aviation Administration (FAA) to finally approve its first commercial flights in the U.S. this year.

Assuming those tests are successful and the FAA greenlights its first flights, Archer aims to produce 10 aircraft in 2025, 48 in 2026, 252 in 2027, and 650 in 2028. With a backlog of $6 billion, there's plenty of pent-up demand from big customers like United Airlines, Abu Dhabi Aviation, Future Flight Global, Ethiopian Airlines, and Soracle -- a joint venture between Japan Airlines and Sumitomo.

From 2024 to 2027, analysts expect Archer's revenue to rise from nothing to $442 million. But they also expect its EBITDA to stay negative as the company's net losses widen.

Archer could also face intense competition from Joby, which has achieved a higher max speed of 200 miles per hour and a longer range of 150 miles with its S4 aircraft. With an enterprise value of $4.3 billion, Archer is already valued at 10 times its "best-case scenario" sales for 2027 -- so its upside potential could be limited.

The better buy: Uber

Archer could still be a good speculative play on the nascent eVTOL market, but Uber looks like the safer investment. Uber's growth trajectory is clearer, it's more profitable, and its valuations aren't overheated. It could also offer investors a bit of conservative exposure to the eVTOL market through its partnership with Joby over the next decade.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Lyft. The Motley Fool has a disclosure policy.