Deep Dive: Uber Technologies, Inc. (UBER)

Recommendation: BUY Price Target: 97 (15 Upside) Risk Level: Medium

1. Executive Summary

Uber is poised to capitalize on the growing demand for ride-sharing and delivery services. With a dominant market position, a strong brand, and a focus on innovation, Uber can generate significant revenue growth and improve profitability. As the company expands into new markets and service offerings and successfully integrates new technologies, its long-term growth potential will be fully realized.

Investment Thesis

Bull Case: Uber is poised to capitalize on the growing demand for ride-sharing and delivery services. With a dominant market position, a strong brand, and a focus on innovation, Uber can generate significant revenue growth and improve profitability. As the company expands into new markets and service offerings and successfully integrates new technologies, its long-term growth potential will be fully realized. Bear Case: Uber faces significant risks from increased competition, adverse regulatory changes, and economic downturns. If the company's market share erodes, operating costs increase, and investments in new technologies fail to generate returns, Uber's revenue growth and profitability will be negatively impacted. Negative publicity and safety incidents could further damage the company's brand reputation and financial performance. Conviction: High

2. Business Overview

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It connects consumers with independent providers of ride services for ridesharing services; and connects riders and other consumers with restaurants, grocers, and other stores with delivery service providers for meal preparation, grocery, and other delivery services. The company operates through three segments: Mobility, Delivery, and Freight. The Mobility segment provides products that connect consumers with mobility drivers who provide rides in a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. It also offers financial partnerships, transit, and vehicle solutions offerings. The Delivery segment allows consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered; and offers grocery, alcohol, and convenience store delivery, as well as select other goods. The Freight segment connects carriers with shippers on the company's platform and enable carriers upfront, transparent pricing, and the ability to book a shipment, as well as transportation management and other logistics services offerings. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.