We recently published a list of Ride Sharing and Food Delivery Stocks List Ranked by Hedge Fund Sentiment. In this article, we are going to take a look at where Avis Budget Group, Inc. (NASDAQ:CAR) stands against other ride sharing and food delivery stocks.
Overview of the Food Delivery and Ride-Sharing Industry
According to a report by Mordor Intelligence, the global ride-sharing market has a size of $53.02 billion as of 2025. It is expected to grow at a compound annual growth rate of 11.45% between 2025 and 2030, reaching $91.16 billion at the end of the forecast period. Europe is the largest market for the ride-sharing industry. However, Asia Pacific takes the lead as the fastest-growing. The industry has a low market concentration.
Some of the key reasons behind this growth include a rise in initiatives to bring carbon emissions down and rapid urbanization, as well as trends such as lack of efficient public transportation services in various countries. The rising expenses of vehicle ownership and maintenance are also significant growth drivers for this industry. Similarly, innovative trends in the ride-sharing industry, such as driverless vehicles, are also allowing growth.
The online food delivery industry has become a force to reckon with due to recent technological advancements. According to a report by Mordor Intelligence, the online food delivery market has a size of $780 billion as of 2025. It is anticipated to grow at a compound annual growth rate of 15.01% between 2025 and 2030, reaching $1.57 trillion at the end of the forecast period. Similar to the ride-sharing industry, the food delivery sector has a low market concentration. Asia Pacific is the largest market for the industry, and it is also the fastest growing.
Some of the primary factors behind growth in this sector to be urbanization, technological advancements, and rapidly changing consumer lifestyles. Since smartphones and high-speed internet have become a pivotal part of consumer life, online food ordering has become accessible and seamless. Similarly, the emergence of cloud kitchens, which only offer food delivery without traditional dining options, has slashed operational expenses and allowed restaurants to make food delivery their specialty, further bolstering market scalability.
READ ALSO: 10 Best Stocks That Will Always Grow and 11 Best Retail Stocks to Buy Right Now.
Technological Advancements in the Food Delivery and Ride-Sharing Industries
The use of innovative technology is increasingly altering the food delivery and ride-sharing industries. For instance, Grubhub and Avride announced a collaboration to bring autonomous robot food delivery to colleges across the country. While the service is currently only available at The Ohio State University, students studying at Grubhub partnered campuses can easily order snacks, meals, and convenience items through delivery carried out by robots.
The first fleet of the collaboration’s 100 robots is currently active in The Ohio State University campus. The fleet is fitted with next-generation models that can manage high delivery volumes in the university’s premises. This advanced technology was derived from Avride’s expertise in autonomous vehicles, as its robots are reliable, intelligent, and able to navigate challenging environmental conditions such as snow and rain.
Since both the food delivery and ride-sharing industries are expected to grow at notable compound annual growth rates, let’s look at the best ride-sharing and food delivery stocks that are popular among elite hedge funds.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of ride-sharing and food delivery stocks and ranked them in ascending order of hedge fund sentiment as of fiscal Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up shot of a family loading their luggage into a car rental vehicle.
Avis Budget Group, Inc. (NASDAQ:CAR)
Number of Hedge Fund Holders: 35
Avis Budget Group, Inc. (NASDAQ:CAR) is a provider of vehicle sharing and renting services. The company operates in the Americas and International segments. The Americas segment manages car sharing and vehicle renting operations in South America, North America, Central America, and the Carribean. The International segment covers vehicle renting and car sharing in Africa, Asia, Europe, the Middle East, and Australasia.
The company reported $2.7 billion in revenue for fiscal Q4 2024, while revenue for the full year 2024 reached $11.8 billion. Avis Budget Group, Inc. (NASDAQ:CAR) also reported an adjusted EBITDA of $628 million for 2024.
The company is focusing on expediting its fleet rotation, creating higher certainty on its fleet costs back to normalized levels and positioning it to slash maintainenance and repair costs, boost utilization, and provide an improved customer experience while sustainably growing adjusted EBITDA in 2025 and beyond. This strategic initiative thus brings a positive light to the company’s long-term operations.
On April 11, Bank of America Securities analyst John Babcock maintained a Buy rating on Avis Budget Group, Inc. (NASDAQ:CAR) and set a price target of $105.00.
Overall, CAR ranks 6th on our list of the best ride sharing and food delivery stocks. While we acknowledge the potential for CAR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CAR but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
