UBER - Embedded Expectations Analysis - 2020 12 29
Uber Technologies, Inc. (UBER:USA) currently trades at a premium to UAFRS-based (Uniform) assets, with a 9.1x Uniform P/B. At these levels, the market has expectations for profitability to inflect positively, but management appears concerned about EBITDA, penetration rates, and EatsSpecifically, management may lack confidence in their ability to mitigate freight EBITDA margin declines and achieve breakeven levels in overall adjusted EBITDA. Furthermore, they may lack confidence in their ability to improve their category position in different markets and maintain a good business position in 11 major markets, and might have concerns about the value of the Tonight I'll be Eating campaign. In addition, they may have concerns about the sustainability of growth in Eats pass members. Also, they may lack confidence in their ability to sustain high penetration rates and improve the Delivery business. Additionally, they may be concerned about the sustainability of the recovery of their Mobility business and the effect of lockdown restrictions in different cities. Finally, management may be exaggerating the potential of the Uber app as the go-to app of consumers for travel and delivery services
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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