Sephora becomes first prestige beauty retailer on Uber Eats

SAN FRANCISCO - Uber Technologies, Inc. (NYSE:UBER), a prominent player in the ground transportation industry whose stock has surged over 56% year-to-date, and Sephora announced a partnership Tuesday to offer on-demand delivery from hundreds of Sephora locations across the United States and Canada through the Uber Eats platform.

The collaboration marks Uber Eats’ first entry into the prestige beauty retail category, allowing customers to order makeup, skincare, fragrance, haircare and wellness products with delivery in as little as 25 minutes, according to a company press release.

Sephora Beauty Insider Loyalty members can link their accounts to continue earning points on purchases made through the Uber Eats app. Uber One members will receive free delivery on eligible orders.

"Today’s consumers want effortless access to their favorite brands—and beauty is no exception," said Susan Anderson, Global Head of Delivery at Uber.

Nadine Graham, Senior Vice President and General Manager of Ecommerce at Sephora, stated the partnership "unlocks even more ease and immediacy for both our existing and new clients" for everyday purchases and last-minute gifting needs.

To promote the launch, Uber Eats is offering U.S. customers $10 off their first delivery order of $50 or more until October 30, 2025.

Customers can access Sephora products by opening the Uber Eats app, tapping the Retail or Beauty category, searching for Sephora, and browsing available products.

Sephora operates more than 3,200 stores globally and offers products from over 300 brands, including its own Sephora Collection.

In other recent news, Uber Technologies has been actively expanding its autonomous vehicle testing initiatives. The company, in collaboration with Momenta, plans to test autonomous vehicles in Germany next year, with Munich being the initial testing ground before expanding to other European cities. Additionally, Uber and Avride are intensifying their autonomous vehicle testing in Dallas, preparing to launch their first public robotaxi service later this year. The autonomous Hyundai IONIQ 5 vehicles, branded with Avride’s lavender logo, are already a common sight in downtown Dallas as the companies finalize their technology for public use.

In analyst developments, TD Cowen has maintained its Buy rating and a price target of $108 for Uber, following discussions with company executives. RBC Capital has also expressed confidence in Uber by raising its price target to $100 from $94, maintaining an Outperform rating. This decision is based on positive performance indicators from Uber’s second-quarter results, particularly in its Mobility and Delivery segments. RBC also noted an improved competitive stance in the U.S. ride-hailing market compared to the previous quarter.

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