Skip to Content
Morningstar
Get 14 Days Free

Uber Technologies Inc UBER

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

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.

Read Full Analysis

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

Related

Stock Strategist
Can Rivals Catch DoorDash?
As its network effect strengthens, we think the company can maintain its lead.
Ali Mogharabi
Market Update
Marqeta's $1.2 Billion IPO: What to Know
The financial technology startup may not be a household name, but it has been a key to success for many firms.
Margaret Giles
Stock Analyst Update
Demand for Uber's Delivery Growing; Shares Attractive
Uber's first-quarter top- and bottom-line results beat FactSet consensus estimates.
Ali Mogharabi
Sustainability Matters
Let’s Not Leave Behind the S & G in ESG
Investors--and policymakers--should consider sustainability issues holistically.
Jon Hale
Investing Specialists
The Weekend Pitch: What You Need to Know From the Past Week
Instacart, Uber, Coupang, and Deliveroo are just some of the big names making big delivery news in this roundup from PitchBook, a Morningstar company.
Kevin Dowd
Stock Analyst Update
Uber Q4 Results Show Slow Mobility Improvement; FVE $67
Uber reported mixed fourth-quarter results as the firm missed top-line expectations but beat FactSet consensus estimates on the bottom-line. We have slightly increased our projections and rolled our model forward, increasing our fair value estimate to $67 from $61.
Ali Mogharabi
Commentary
What Happened to All of the Self-Driving Cars?
Last year was meant to be the dawn of autonomous vehicles, so where are they?
Keith Reid-Cleveland
Commentary
The Week Ahead: Coca-Cola, Uber, and Walt Disney to Report Earnings
Pepsi and Cisco are also expected to report their earnings.
Carole Hodorowicz
Commentary
5 Companies That Made the Best of a Bad Year
Here's how these companies shifted their thinking in 2020 to reflect pandemic-driven consumer trends.
Emelia Fredlick
Stock Analyst Update
Uber Plans to Sell ATG; Profitability Path Clearer
We're raising the technology firm's fair value estimate to $61 per share.
Ali Mogharabi
Stock Analyst Update
Uber Finishes Postmates Acquisition; Raising FVE to $59
We view the acquisition as a necessary strategic move that could strengthen Uber’s overall network effect moat source.
Ali Mogharabi
Stock Analyst Update
Uber’s Delivery Network Effect Continues to Strengthen
We continue to be impressed with the gradual improvement in the mobility business and are raising our fair value estimate.
Ali Mogharabi
Stock Analyst Update
Uber, Lyft Drivers Remain as Contractors
California voters approved Proposition 22, which allows Uber and Lyft to categorize drivers as contractors.
Ali Mogharabi
Commentary
The Week Ahead: CVS and Berkshire Hathaway to Report Earnings
We also anticipate an earnings report from Uber.
Carole Hodorowicz
Stock Analyst Update
Uber's Delivery Demand Stays Strong, Mobility Suffers
We are maintaining our fair value estimate for the narrow-moat company and view shares as attractive.
Ali Mogharabi
ETF Specialist
Value Investing Revisited
The methods may need fine-tuning, but fundamentals still drive returns.
Alex Bryan
Stock Analyst Update
What Postmates Acquisition Means for Uber
We think the deal could strengthen the firm's network effect moat source.
Ali Mogharabi
Stock Analyst Update
European Company Could Buy GrubHub for $6 Billion
Our fair value estimate for the narrow-moat firm remains.
Ali Mogharabi
Commentary
Key ESG Issues Up for Shareholder Vote
Employee welfare and political influence are among the big environmental, social, and governance issues this year.
Jackie Cook
Stock Analyst Update
Uber Interested in Grubhub, but No Deal Reached Yet
If an agreement is reached, the deal likely will face regulatory and antitrust barriers.
Ali Mogharabi

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.