Great write-up! Uber has been on my watchlist for a while; great business model, holds market share with a nice competitive advantage, and has amazing fundamentals. Quick questions: What are your thoughts on the municipal/city regulation recently with Uber, DoorDash etc? (The minimum wages and such.) Also, what are your thoughts on Tesla's robotaxi as an Uber shareholder? I don't seem to view it as a threat even without being a shareholder.
Hi Jacob, thank you for the comment and questions.
Indeed, the changing city regulations aren't easy for Uber and its peers, with lawsuits all over the place. However, Uber has shown in the past and definitely in recent years that it is well able to offset these headwinds through pricing changes and new driver terms. Therefore, I am not overly worried here, also because cities will soon realize that losing Uber and its peers is a big blow as well. They can't go without anymore.
As for Tesla and potential Robotaxi's, I understand some concerns here as well, but I don't think this is a threat to Uber at all - More of a tailwind even, mostly because this can give Uber significant margin gains. The company is already working intensely with Waymo, and I expect it to work with Tesla if Robotaxi's take off. For me, as a shareholder, currently not a concern.
I hope this! answered your question. Otherwise let me know!
Nice write-up !!
Great write-up! Uber has been on my watchlist for a while; great business model, holds market share with a nice competitive advantage, and has amazing fundamentals. Quick questions: What are your thoughts on the municipal/city regulation recently with Uber, DoorDash etc? (The minimum wages and such.) Also, what are your thoughts on Tesla's robotaxi as an Uber shareholder? I don't seem to view it as a threat even without being a shareholder.
Hi Jacob, thank you for the comment and questions.
Indeed, the changing city regulations aren't easy for Uber and its peers, with lawsuits all over the place. However, Uber has shown in the past and definitely in recent years that it is well able to offset these headwinds through pricing changes and new driver terms. Therefore, I am not overly worried here, also because cities will soon realize that losing Uber and its peers is a big blow as well. They can't go without anymore.
As for Tesla and potential Robotaxi's, I understand some concerns here as well, but I don't think this is a threat to Uber at all - More of a tailwind even, mostly because this can give Uber significant margin gains. The company is already working intensely with Waymo, and I expect it to work with Tesla if Robotaxi's take off. For me, as a shareholder, currently not a concern.
I hope this! answered your question. Otherwise let me know!
Great response. Appreciate it!