Ride-hailing giant Uber Technologies (UBER) is expanding its delivery business through Uber Eats by introducing a new returns feature. With this update, customers can return eligible retail items directly from their phones, and a courier will pick them up and bring them back to the store for a fee. As a result, users can now receive an instant refund as soon as the item is collected, which makes the process faster and more convenient. The feature applies to purchases from retailers on the platform, as long as the item costs at least $20.
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New trading tool for AMZN bullsUnsurprisingly, many customers find returns stressful, especially when they have to print labels, find packaging, and wait for refunds. In fact, a recent survey found that one-third of shoppers say that the process is difficult, while 43% say that waiting for a refund is the most frustrating part. Because of this, companies have been looking for easier solutions. For example, Amazon (AMZN) already allows customers to return items at physical locations, which helps simplify the process.
Nevertheless, this move builds on Uber’s growing success in delivery services, which generated $4.9 billion in revenue in the last quarter of Fiscal 2025, up 30% year-over-year. In addition, Uber had already offered a basic return option through its courier service, which handled prepaid and packaged items. However, this new feature goes further by allowing unpackaged items to be picked up and returned directly to retailers, instead of being dropped off at shipping locations like UPS (UPS) or FedEx (FDX).
Is UBER Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UBER stock based on 26 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average UBER price target of $106.24 per share implies 36.1% upside potential.
