Uber Technologies (NYSE: UBER) has become a dominant ride-hailing and delivery platform. However, its shares have disappointed investors. They’re down 14% in 2026 (as of June 10), while trading 30% below their peak.

It’s worth taking a closer look. Uber trades at a price-to-earnings multiple (P/E) of just 17.5, which is much cheaper than the overall market. But if you’re new to this growth stock in 2026, it’s important to understand a key variable driving the company’s success.

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Uber is a platform business. The mobility segment connects riders and drivers. The delivery segment connects consumers, couriers, and merchants. The combination of all these stakeholders creates powerful network effects, since a larger base of stakeholders increases Uber’s value proposition over time.

This characteristic supports the company’s wide economic moat, making it difficult to disrupt. This is crucial for investors to remember as autonomous driving technology causes concerns about the company’s durability.

CEO Dara Khosrowshahi believes his company is positioned well in the face of ongoing innovation within the mobility sector. He thinks a hybrid network, combining human drivers and self-driving cars, will be the path ahead. And Uber’s technological infrastructure, experience matching supply and demand, and control of the customer relationship are all strengths.

Once established, network effects are extremely challenging to overcome, even in the face of tech advancements. Uber’s impressive growth trajectory is proof of this.

Before you buy stock in Uber Technologies, consider this:

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