Publication Date: 07 May 2019 - By Robert P.By Robert P.
Actionable
Differentiated
IPO & PlacementsEquityUSATechnology
Share
Strengths & Opportunities
Uber has been steadily growing with both monthly active users as well as gross bookings on the platform growing
It dominates the US market with 69% market share and size approx. 6x of its biggest competitor
With the vision to become the Amazon of transportation, Uber has expanded its product offerings to include services such as food delivery and freight brokerage, and is investing in future technologies such as self-driving cars, flying taxis, and food delivery drones
Risks & Concerns
Uber faces increasing competition from both established players and new entrants in both domestic as well as international markets
Switching costs are low for both consumers and drivers
Revenue growth is decelerating while losses are deepening
In our view, Uber lacks economies of scale and even further market share gains may not make it net income positive