Uber Abandons Self-Driving Car Development Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy UBER?
Source: NASDAQ.COM
- Strategic Shift: Uber has opted not to develop its own self-driving cars, instead leveraging partnerships with companies like Waymo and Rivian to utilize existing technology, thereby avoiding high capital expenditures and potential profit losses associated with autonomous vehicle development.
- Market Leadership: Despite facing threats from self-driving competitors, Uber has seen significant growth in revenue, earnings, and free cash flow over the past three years, with its stock performance significantly outpacing broader equities, demonstrating its strong competitive position in the ride-hailing market.
- User Base Advantage: Uber's brand and user ecosystem provide a robust market access point for its partnerships with autonomous vehicle companies, allowing partners to quickly reach potential customers, thereby enhancing Uber's market share.
- Future Growth Potential: With only about 10% of adults in its most advanced markets using its services monthly, Uber has substantial market space to grow, and it aims to achieve sustainable growth by reducing costs and increasing profit margins in the long run.
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Analyst Views on UBER
Wall Street analysts forecast UBER stock price to rise
32 Analyst Rating
28 Buy
3 Hold
1 Sell
Strong Buy
Current: 71.730
Low
72.00
Averages
107.10
High
150.00
Current: 71.730
Low
72.00
Averages
107.10
High
150.00
About UBER
Uber Technologies, Inc. operates a technology platform that uses network and technology to power movement from point A to point B. It develops and operates technology applications supporting a variety of offerings on its platform (platform(s)). Its segments include Mobility, Delivery and Freight. Mobility products connect consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. Delivery offerings allow consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered. In certain markets, the Delivery segment provides offerings for grocery, alcohol, and convenience store delivery as well as select other goods. The Freight segment connects carriers with shippers on its platform, and gives carriers upfront, pricing and the ability to book a shipment. The Freight segment also includes transportation management and other logistics service offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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