Mark Mulhern (Manu Invests) on Autonomous Taxis and the Buying Opportunity in Uber - The Compound and Friends Recap

Podcast: The Compound and Friends

Published: 2026-02-02

Duration: 42 minutes

Guests: Mark Mulhern

Summary

Mark Mulhern argues that Uber is undervalued and poised for growth, particularly through its strategic partnerships in the autonomous vehicle space. Uber's approach as a demand aggregator rather than a tech owner provides a unique competitive edge.

What Happened

Mark Mulhern, known as Manu Invests, engages in a detailed discussion with Josh Brown about the future of Uber and autonomous vehicles. Mulhern emphasizes that Uber is trading at 16 times next year's earnings estimate, with a 25% expected cash flow growth. He sees Uber's complex financials and its misunderstood model as a long-term buying opportunity, especially given its significant strides in AV partnerships.

Uber's strategic partnerships with companies like Waymo and Tesla are highlighted as a key advantage, enabling Uber to leverage cutting-edge technology without the burden of developing its own. This approach allows Uber to act as a demand aggregator, similar to Dara Khosrowshahi's successful strategy during his tenure at Expedia.

The conversation delves into the global reach of Uber's AV partnerships, which span across Asia and the Middle East. These partnerships position Uber to capitalize on a fragmented market, enhancing its competitive advantage by aggregating demand from a wide network of AV providers.

Mark Mulhern discusses the critical phase Uber is entering, projecting significant growth in the autonomous vehicle sector over the next one to three years. He notes that Uber has become a cash machine, shedding its previous image as a cash-burning company, and is now generating positive free cash flow.

The episode also touches on the Lucid + Nvidia deal and its implications for the AV ecosystem, with Uber's partnership with Nvidia aiming to create a robust technology platform for global mobility. This collaboration is seen as a step forward in reducing costs by eventually eliminating the need for human drivers.

Bill Ackman's investment in Uber is noted, with 20% of his fund allocated to the company, indicating strong institutional confidence in Uber's long-term strategy. Mulhern underscores the importance of Khosrowshahi's leadership, drawing parallels to his previous success at Expedia.

Overall, the episode paints a bullish picture of Uber's future, driven by its strategic approach to autonomous vehicles and its financial turnaround. Mark Mulhern's insights provide a compelling case for why Uber should not be overlooked by investors.

Key Insights