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Uber Technologies Inc UBER

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Morningstar’s Analysis

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Demand for Uber’s Delivery Continues to Grow and Mobility Is Recovering; Shares Are Now Attractive

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

Uber reported first-quarter results with the top and bottom line beating the FactSet consensus estimates. Gross bookings displayed strong growth driven by continuing strength in the delivery business and demand improvement in mobility. Adjusted EBITDA loss in delivery improved from a year ago, while the mobility segment continued to generate positive adjusted EBITDA. Like its peer Lyft, Uber is experiencing limited supply in mobility and expects higher driver acquisition costs in the second quarter which will pressure mobility take rates and the segment’s bottom line, but we expect it to remain adjusted EBITDA profitable. As we have mentioned before, we think Uber can more easily cross sell mobility to its existing delivery drivers. In our view, the firm’s revenue diversification strategy is paying off as mobility is showing signs of recovery, while the delivery business continues to display impressive organic and overall growth.

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Company Profile

Business Description

Uber Technologies is a technology provider that matches riders with drivers, hungry people with restaurants and food delivery service providers, and shippers with carriers. The firm's on-demand technology platform could eventually be used for additional products and services, such as autonomous vehicles, delivery via drones, and Uber Elevate, which, as the firm refers to it, provides "aerial ride-sharing." Uber Technologies is headquartered in San Francisco and operates in over 63 countries with over 110 million users that order rides or foods at least once a month. Approximately 76% of its gross revenue comes from ride-sharing and 22% from food delivery.

Contact
1515 3rd Street
San Francisco, CA, 94158
T +1 415 612-8582
Sector Technology
Industry Software - Application
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 22,200

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