COVID-19 pandemic hits Uber, propelled them to grow in a lucrative direction
10 / January / 22 Visitors: 544 ★★★★★
Uber shares have experienced a difficult 2021, losing 18%, but in 2022 the situation may change. Uber CEO Dara Khosrowshahi says that now the company can demonstrate growth in any conditions. Market analysts express their opinions
The COVID-19 pandemic and its new strains have hit Uber's (UBER) ride-sharing business, but have boosted the company's delivery business
Uber shares have fallen 18% in 2021, but have recovered slightly in the last 30 days, increasing by 9%
Anyway, as of the beginning of 2022, Uber is a company that has changed significantly over the year
Last year, Uber continued to get rid of unprofitable subsidiaries (in December 2020, the company sold its autonomous driving division to Aurora), while making acquisitions for the booming delivery business
Last February, Uber acquired the leading alcohol delivery company Drizly for $1.1 billion, which follows the purchase of the delivery service Postmates for $2.65 billion. in July 2020
To expand its Uber Freight division, the company has signed a deal to acquire a leading international supplier of technological solutions in the field of logistics, Transplace, for $2.25 billion
By strengthening its delivery divisions, including Uber Eat and Freight Freight, the company is creating the foundation for greater diversification and less dependence on the revenue of the passenger transportation business, which has plummeted due to the pandemic.
According to Uber's latest financial report, in the third quarter of 2021, which ended on September 30, revenues from Uber Eats delivery services again turned out to be more than revenues from taxi services, and continued to grow at a faster pace.
Uber's quarterly revenue statistics for the last two quarters show an increase of 75% and 55% compared to the same figures a year ago.
In addition, the company's management forecasts EBITDA profit (before taxes and depreciation) in the amount of $25 to $75 million, which will be the second quarter of profitability.
CEO Dara Khosrowshahi said in an interview with Bloomberg last month that he expects the company to approach the upper bound of this forecast.
After Covid, we believe that we can succeed and grow really in any environment, Khosrowshahi said, adding that he is confident that the company will reach record highs in 2022.
Market analysts' opinion about Uber
In December, the investment company UBS rated Uber shares with a “buy rating and a target price of $80. This is twice as high as the price of $41.51 per Uber share at the close of trading on Friday, January 7.
On Friday, Needham analysts called Uber shares the best choice for 2022, also announced a “buy rating, but slightly lowered their target price from $77 to $75. Trading signals and forecasts for Uber shares.
Experts are optimistic, because they believe that the revenues of delivery services will reach new records in 2022.