The Hyundai S-A1 electric city air traffic concept will be on display at the 2020... [+] Consumer Electronics Show (CES) on January 7, 2020 in Las Vegas, Nevada. -Flying taxis are specially designed for Uber Elevate's upcoming city air travel service. The modular Fiat Centoventi concept car was exhibited at the Consumer Electronics Show (CES) 2020 in Las Vegas, Nevada on January 7, 2020. (Photo by Robin Baker/AFP) (Photo by Robin Baker/AFP, Getty Images)
Uber Technologies, Inc. (UBER) went public on May 10, 2019, and its scale continued to expand, followed by much fanfare, and management pledged to provide investors with large amounts of capital. It has not fulfilled this promise. After The Edge emphasized that this is a thing to avoid, a few days later, after the IPO suddenly broke out, CEO Dara Khosrowshahi admitted that Uber’s UBER deal was difficult to debut, and said that “the tough time to open the market may take months. Time.” Investors still need nearly a year and a half to recover their funds.
Two and a half years later, the stock price is still below the IPO price of $45, which has exacerbated the fire, that is, large-scale IPOs with a large number of media reports are a tool to enrich management rather than shareholders. In fact, by November of the same year of listing, according to the US Securities and Exchange Commission, co-founder Travis Kalanick's sales totaled 1.7 billion U.S. dollars, and he had sold 90% of the stock. Kalanick was removed from office in 2017 after being accused of sexual harassment and discrimination under Uber under his leadership, and was replaced by Khosrowshahi. The stock continued to fall from there and reached a pandemic market crash of just under $14 on March 18, 2020, 70% less than it convinced investors that this was a good bet. Their withdrawal is forgivable, and the outlook does not look good.
The improvement in the environment and the subsequent rebound led by the vaccine (which is helpful to the market, including Uber) still keep investors' buying in a downturn, but now may be the time to buy.
Dara Khosrowshahi went from an Iranian refugee to a protégé of media mogul Barry Diller, who helped him take over Uber in 2017 after the two successfully spun off Expedia.
Now, after top CEO Khosrowshahi purchased $9 million in stock, The Edge (a leading source of research for companies that underperform in terms of active participation, special circumstances, and spin-offs) believes that for investors who are ready to believe in the ride-sharing business In general, the company's vision has a lot of room for growth. Khosrowshahi's only other purchase was in November 2019, when he bought 200,000 shares at a price of $26.75, with a six-month return of 30%, indicating a good trading history.
It is now a $71 billion company with 26,900 employees in 785 metropolitan areas and 85 countries/regions around the world. Khosrowshahi’s goal is to push Uber to new heights in 2022, and The Edge predicted that the unicorn may have failed before, but he changed his mind because of the CEO’s confidence in the company’s future plans. Uber's situation is improving because its global acquisitions show no signs of slowing down. Khosrowshahi's collaboration with Mark Zuckerberg will bring investors billions of dollars in investment. Meta (the new name of the Facebook empire) began to launch a pilot partnership with WhatsApp in India, and if the launch is successful, it will go global, thereby achieving greater revenue in 2022.
New York, New York-May 10: Uber CEO Dara Khosrowshahi (center), together with other employees, rang the opening bell of the New York Stock Exchange (NYSE) because the ride-hailing company Uber is highly anticipated to conduct an initial public offering (IPO) in New York City on May 10, 2019. Uber will start trading on the New York Stock Exchange after raising $8.1 billion in the largest IPO in the United States in 5 years. Thousands of Uber and other app-based drivers protested across the country on Wednesday, demanding higher wages and working conditions, including sick leave, overtime and minimum wages. (Photo by Spencer Pratt/Getty Images)
Dara is an analyst and vice president of Allen & Company, and is a member of the board of directors of NYT, Expedia, and Catalyst.org, so he has an enviable network and influence. He is a humble hero who is no stranger to admitting failure and has brought him a good reputation. As we all know, he supported the global refugee crisis after fleeing the Iranian revolution at the age of 9.
He has a real code of ethics and wrote an opinion piece for The New York Times in August 2020, insisting that “gig workers want both flexibility and benefits-we support laws that can achieve this. "
As a result of the High Court’s ruling, the San Francisco-based company was also told to overhaul its work practices in the UK. But Khosrowshahi has already apologized. He said: "On behalf of everyone at Uber, I apologize for the mistakes we made."
This New York Stock Exchange listed company has 101 million monthly active users worldwide in the second quarter of 2021. In the United States alone, Uber has 68% of the ride-sharing market share and 26% of the food delivery market.
Uber plans to fly higher in 2023
Uber has established a partnership with Joby Aviation and provided Joby Aviation with US$75 million in funding for the development of an all-electric, vertical take-off and landing aircraft, which may be put into use in just two years. Uber Elevate will mark a major shift in air travel for commuter passengers, enabling seamless integration between ground and air travel for future customers.
Uber Eats brings profits to hungry investors
UBER’s Uber Eats platform (food delivery) is already a profitable business, and the company is increasing its investment in grocery and courier services, which enables it to occupy a leading position in seven of the ten markets for courier services . Operation. By deriving advertising revenue from these platforms, Uber's opportunity to benefit from non-restaurant food delivery business appears to have matured.
Delivery is the next division of UBER, which is achieving considerable growth and may be the company's next expansion. The total number of delivered bookings increased by 50% year-on-year, and it almost broke even in terms of adjusted EBITDA (-$12 million).
TOKYO, Japan-April 11: Uber Eats delivery guys ride a bicycle through the Kabukicho entertainment district... [+] April 11, 2020 in Tokyo, Japan. Tokyo Governor Yuriko Koike has asked companies such as schools, sports facilities, bars and restaurants to temporarily close or shorten their business hours. As the Covid-19 coronavirus outbreak continues to spread across the country, Japan has entered a state of emergency, covering 7 of Japan's 47 prefectures. (Photo courtesy of Tomohiro Ohsumi/Getty Images)
Out of the COVID pandemic, Uber's traction is getting stronger, because its latest third-quarter results show that the end market performance has improved. In the third quarter, total mobile travel bookings not only increased by 67% year-on-year, but also increased by 14% month-on-month and 14% month-on-month. The upward trend in airport travel caused the sector's adjusted EBITDA to rebound to a positive side, reported at 5.5%. This shows that mobile traffic is returning to normal levels before Covid, which bodes well for the profitability of the sector.
Conquer the world at once
Uber's inorganic tasks, such as the acquisition of Dubai's ride-sharing and payment services in 2020, and Careem, which provides services to millions of users in the Middle East, North Africa and Pakistan, will continue to help it expand its business scale and increase its profitability. In addition to completing the acquisition of Careem, its minority stakes also include Didi, Grab and Yandex YNDX. Taxi joint ventures ensure steady growth in the market where Uber exits but these companies continue to operate.
Make money super APP Uber One
Renamed to Uber One, the highly successful subscription service Uber Pass has 6 million members worldwide, and Uber Pass accounts for about 20% of the total bookings, which ensures higher participation through the app and higher monthly visits/ The number of bookings and its basket size increase over time. Uber's Uber Pass in Taiwan has achieved great success, where the total bookings accounted for nearly 50%, which shows that it can achieve global growth to ensure a stable flow of recurring income.
Self-driving cars and creative flight boost Uber's green light future
UBER reported on a department (ATG and other technology projects) that is mainly responsible for the development and commercialization of autonomous vehicles and carpooling technology, as well as Uber Elevate. On January 19, 2021, Uber completed the sale of ATG business to Aurora, and at the same time invested US$400 million in cash in Aurora, and signed a cooperation agreement. The two parties will cooperate on the launch and commercialization of their own businesses. -Drive vehicles on Uber's carpool network.
Uber plans to continue working with Aurora to effectively utilize its network during the transition to autonomous vehicle technology. The Edge believes that if it is successfully launched, it will not require Uber to pay for driver fees, and will balance its total revenue and net revenue, greatly increasing bottom-line growth. It does not need to share any money for travel using self-driving cars with drivers, increasing its cash bank.
At the end of November 2021, the Belgian court also ordered Uber to close its operations in Brussels and most of Belgium. The order is an extension of the Belgian court's 2015 ruling prohibiting the provision of taxi services by private individuals, and now it also applies to professional drivers, resulting in the suspension of the Uber app in Brussels. In other cases, the European Supreme Court ruled in 2017 that Uber should be regarded as a transportation service provider and therefore must comply with local taxi regulations. In the UK, Uber is forced to recognize that the driver is a worker, so it has to give the driver some benefits, such as holiday pay.
Omicron's concerns may cause harm in the short term
The resurgence of the new Covid variant Omicron: The lockdown concerns caused by the Omicron variant of Covid led to recent fluctuations. Global mobile traffic has just returned to normal, just like before Covid; however, the emergence of the new Covid virus has caused some global countries such as Germany and Austria to re-impose blockades, while travel restrictions announced by other countries will weaken mobility and airport traffic growth of. Concerns about a new wave of blockades are affecting UBER's near-term forecasts.
Edge believes that the stock has about 50% upside potential. UBER's strong potential relative to its peers, and its plans to enter the wider Metaverse space over time, supported by CEO Dara Khosrowshahi's recent internal acquisitions, provide a compelling reason to invest in UBER at current levels .
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The author of this article holds shares in Uber.