Uber (NYSE: UBER) Eats once held an exclusive delivery partnership with McDonald's (NYSE: MCD) . But that deal ended in early 2019, and McDonald's subsequently spread out its bets by signing additional delivery deals with DoorDash (NYSE: DASH) and Grubhub (NYSE: GRUB) .
The end of that exclusive deal highlighted the symbiotic but fragile relationship between third-party delivery platforms and restaurants. It also suggested that Uber, which still generates most of its revenue and all of its adjusted EBITDA from its ride-hailing platform, could be a flimsier investment than McDonald's -- even though it was growing at a much faster rate.
Growth-oriented investors might still favor Uber over McDonald's today, but I believe the fast-food giant will easily outperform the ride-hailing and food-delivery company this year, for three simple reasons.
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Better Buy: Uber vs. McDonald's