UBER - Embedded Expectations Analysis - 2020 02 10
Uber Technologies, Inc. (UBER:USA) currently trades at a significant premium relative to UAFRS-based (Uniform) Assets, with an 8.6x Uniform P/B. At these levels, the market is pricing in a substantial profitability inflection; however, management may be concerned about their ability to manage costs, achieve profitability across their businesses, and improve Uber EatsSpecifically, management may lack confidence in their ability to reduce insurance and payment costs as a percentage of gross bookings, manage marketing and other G&A costs, and reduce customer acquisition costs. In addition, they may lack confidence in their ability to maintain their leadership positioning across the US, Latin America, and the UK, sustain EBITDA margin improvements, and continue their path towards achieving profitability. Moreover, management may be concerned about potential gig worker regulations in California and New York, the impact of cross-promotional activity with partners, and their ability to attract drivers as a result of their flexibility. Furthermore, they may lack confidence in their ability to improve their Uber Eats business, and they may be concerned about their investments in Uber Eats, Uber Money, and Cornershop
Uber Technologies provides ride hailing services. The company develops application for road transportation, navigation, ride sharing, and payment processing solutions. The company serves customers in the United States and Canada, Latin America, Europe, Middle East, and Asia Pacific markets, excluding its discontinued China operations.
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