Uber Technologies Inc
Industrials
North America
Investment summary

Uber Technologies is one of the largest ride-hailing and Delivery platforms globally with 8 leading positions in the top 10 markets. Uber is active in 72 countries and territories. Uber operates globally. The number of Monthly Active Platform Consumers (MAPCs) increased by 12% YoY to 137mn in 2Q23. Monthly active drivers and couriers on Uber reached 5.4mn in 1H23.

Details
Ticker
UBER.N
Trading currency
USD
Last close price, (currency)
47.24
Common shares outstanding
2,005,486,000
Preferred shares
0
MktCap, (currency) mn
96,536
Target price
53.80
Current opinion
Buy
Description

Uber Technologies operates a ride-hailing and delivery platform. Uber connects drivers, couriers, merchants, and food delivery services with consumers. Uber provides services in three segments: Mobility, Delivery, and Freight. Mobility products connect consumers with drivers who provide rides in a variety of vehicles, such as cars, auto-rickshaws, motorbikes, minibusses, or taxis. The delivery platform allows consumers to find, depending on their location, local restaurants, grocery, alcohol, and convenience stores for either delivery or pick up. The freight platform connects carriers with shippers, provides carriers upfront, and enables shipment booking.

Industry view (TAM)

The total addressable market (TAM) is estimated at $5trln for Mobility, $5trln for Delivery, and $4trln for Freight. The global restaurant spend of $1.8trln and grocery spend of $2.5trln are Delivery TAMs. Key Mobility sector growth drivers include deepening core rides penetration, expansion of use cases, scaling of low-cost products, and transition to electric & autonomous vehicles. Ridesharing penetration is still very low even in the largest markets: from 0.3% in Germany to 8.8% in Brazil.

Pros
  1. Uber has a strong market position in its core markets, including the US, Canada, Brazil, Mexico, Australia, and Europe.
  2. Integrated model for earners and one-window entry for consumers help to increase engagement.
  3. A potential to win market share from rivals with narrower offerings
  4. Scalability of the platform shows potential to grow in new markets
  5. Financial improvements and focus on profitable growth
Cons
  1. The company had a history of loss-making operations and needed to control its costs to achieve strategic targets
  2. Regulatory adjustments may affect the business model
  3. High competition
  4. A negative effect of inflation and weak macro on the company's performance
  5. The company may meet slower growth with lower than expected frequency of rides and pressure of price competition
Risks
  1. High inflation
  2. Slow down in mobility trends
  3. Price competition in the sector
  4. Regulatory risks
  5. High fuel costs
Historical price chart
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Peer Group (top 5)

Company RIC Market Capitalization, $mn Last reporting year P/E Fwd 1Y P/E Fwd 2Y EV/EBITDA 1Y fwd EV/EBITDA 2Y fwd EV/Revenues 1y fwd EV/Revenues 2y fwd
Uber Technologies Inc UBER.N 96,536 2022-12-31 129.6 45.5 26.5 17.9 2.7 2.3
Lyft Inc LYFT.OQ 4,179 2022-12-31 26.4 20.0 17.5 10.9 0.8 0.7
Amazon.com Inc AMZN.OQ 1,426,223 2022-12-31 61.5 43.0 14.3 12.1 2.5 2.3
Aptiv PLC APTV.N 28,418 2022-12-31 21.4 16.7 12.1 10.2 1.7 1.5
Tesla Inc TSLA.OQ 788,738 2022-12-31 71.9 54.5 45.0 33.7 7.7 6.2
Apple Inc AAPL.OQ 2,785,707 2022-09-24 29.3 27.1 22.5 21.1 7.4 7.0
Financials
2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue 7,932 11,270 13,000 11,139 17,455 31,877 36,799 41,674 45,551
Growth 42% 15% -14% 57% 83% 15% 13% 9%
EBITDA -2,642 -1,867 -3,431 -2,528 -774 1,713 3,998 6,101 7,548
EBITDA margin -33.3% -16.6% -26.4% -22.7% -4.4% 5.4% 10.9% 14.6% 16.6%
Net income -4,033 987 -8,512 -6,788 -570 -9,138 -443 1,396 2,513
Net margin -50.8% 8.8% -65.5% -60.9% -3.3% -28.7% -1.2% 3.3% 5.5%
Net debt -917 490 -3,986 2,202 6,179 6,148 6,148 6,148 6,148
MktCap 50,038 87,551 77,562 87,384 87,384 87,384 87,384

Historical Multiples

2019 2020 2021 2022 2023 2024 2025
EV/Revenue 3.5 8.1 4.8 2.9 2.5 2.2 2.1
EV/EBITDA -13.4 -35.5 -108.2 54.6 23.4 15.3 12.4
P/E -5.9 -12.9 -136.1 -9.6 -197.3 62.6 34.8
Charts