Why Uber is a Better Bet Than DoorDash

For almost the entire time since DoorDash went public in late 2020 the restaurant-delivery service has traded at a premium valuation to Uber. Lately the gap between the two stocks has nearly closed, although the much bigger ride-hailing and delivery firm remains the underdog of the pair.

While that made sense early on, when the pandemic blitzed Uber’s ride-hailing business and turbocharged DoorDash's service, things have changed. Uber's ride-hailing revenue has surged well past pre-pandemic levels, while its Uber Eats food-delivery business has mushroomed in size. That transformation has turned Uber from a perennial money-loser into a cash machine, churning out $1.7 billion in free cash flow in the second quarter alone.