Uber and Lyft: Adjusting Our Moats, Valuations Amid Robotaxi Threat; We See a Clear Winner

We are transferring coverage of Uber and Lyft, maintaining a narrow moat for Uber while downgrading Lyft to no-moat. As part of this update, we are changing the fair value estimate on Uber from $80 to $79 and the fair value estimate on Lyft from $20 to $16. The ride-hailing industry is at the cusp of a technological inflection point, with autonomous vehicles, or AVs (“robotaxis”), expected to play an increasingly impactful role. We believe that Uber is the only ride-hailing company with a vast network and critical mass. As such, Uber presents a strong value proposition to potential AV partners that are looking to drive utilization.