Summary

  • Uber Techlogies, Inc. (Uber) is a mobility as a service/ride-hailing provider based in San Francisco established in 2009.
  • The company offers services through three business segments - mobility, delivery, and freight.
  • As of December 31, 2022, Uber has presence in approximately 70 countries around the world and covers 10,500 cities thereby; the company employs 32,800 employees as on the same date.
  • During 4th quarter of 2022, net income attributable to Uber Technologies, Inc. was $595 million, which includes a $756 million net benefit (pre-tax) primarily due to net unrealized gains related to the revaluation of Uber’s equity investments.
  • For the year ended on December 31, 2022, the company has reported revenue of $31.88 billion, an increase of $14.4 billion or 83%. Net loss attributable to Uber Technologies, Inc. during 2022 is $9.14 billion, which was $0.50 billion a year earlier. Net loss per share during the years are $4.64 and $0.26, respectively.

Brief Company Overview

uber logoUber Techlogies, Inc. (NYSE:UBER) is a mobility as a service/ride-hailing provider based in San Francisco established in 2009. Uber was incorporated in Delaware in July, 2010 as UberCab, Inc. UberCab, Inc. became Uber Technologies, Inc. in February, 2011 after complaints from San Francisco taxicab operators. The Company develops applications for road transportation, navigation, ride sharing, and payment processing solutions. The company offers services through three business segments - mobility, delivery, and freight. As of December 31, 2022, Uber has presence in approximately 70 countries around the world and covers 10,500 cities thereby; the company employs 32,800 employees as on the same date.

The company got listed in May 10, 2019 in NYSE under the symbol "UBER" and traded at 7.6% less than the set price on day of debut. Ronald Sugar is the Chairman of Uber and Dara Khosrowshahi service as the CEO. Subsidiaries of the company are Car Next Door, Drizly, Careem, Cornershop, Postmates, and Uber Eats.

uber cover photo

On April 01, 2023, the stock of the company opened at $31.42. The company has incurred losses in 2022, therefore, its P/E ratio is non-existent. The company pays no dividend on its shares so far. Return on Assets (TTM) is -3.23%, Return on Equity (TTM) is -76.62%.

Recent Developments

  • In second week of September, 2022, Uber system got hacked allegedly by LAPSUS$ Hacking Group. Uber did not disclose how much of data got compromised.12
  • Uber Partners with Marqeta, Mastercard, and Branch to Launch New Uber Pro Card, Offering Faster Payments and Fuel Rewards for Drivers. The Uber Pro Card offers customized perks including up to 10% cashback on gas and up to 12% on EV charging.3

  • Uber changed its business model in the UK following a Supreme Court rule that the private hire operators have to consider their driver as employees, therefore, they will be entitled to sick pay, holiday pay, and a minimum wage. The change in the business model means that the riders will no longer contract with the drivers but with Uber directly; drivers will not see the rider's fare or service fee listed on the individual trip earnings receipts rather will see their actual earnings on individual trip receipts and weekly earnings statements which will be 25% lower that the current amount but drivers' take home rates will remain same; drivers will receive worker protection but still have the flexibility to choose if, when and where they will drive.4 The new terms appeared in the app on 14 March, 2022 at 23:59, replaced the existing driving terms.

Financial Highlights

Q4'22 Highlights

For three months ended December 31, 2022, Uber saw 49% YoY growth in its quarterly revenue as the company reports $8.6 billion quarterly revenue. Revenue growth significantly outpaced gross booking growth due to a change in the business model for our UK Mobility business and the acquisition of Transplace by Uber Freight. Net income attributable to Uber Technologies, Inc. was $595 million, which includes a $756 million net benefit (pre-tax) primarily due to net unrealized gains related to the revaluation of Uber’s equity investments.

Gross Bookings grew 19% year-over-year (“YoY”) to $30.7 billion, or 26% on a constant currency basis, with Mobility Gross Bookings of $14.9 billion (+31% YoY or +37% YoY constant currency) and Delivery Gross Bookings of $14.3 billion (+6% YoY or +14% YoY constant currency). Trips during the quarter grew 19% YoY to 2.1 billion, an all-time quarterly high, or approximately 23 million trips per day on average.

Annual Performance Highlights

For the year ended on December 31, 2022, the company has reported revenue of $31.88 billion, an increase of $14.4 billion or 83% mainly due to increase in the gross booking in Mobility segment as the business recover from the impacts of Covid-19, as well as due to acquisition of Transplace in the fourth quarter of 2021 and resulting increase in the Freight Gross Booking. Additionally, Uber saw a $3.9 billion net increase in Mobility revenue as a result of business model changes in the UK and accruals made for the resolution of historical claims in the UK relating to the classification of drivers. Uber also saw an $892 million increase in Delivery revenue resulting from an increase in certain Courier payments and incentives that are recorded in cost of revenue, exclusive of depreciation and amortization, for certain markets where the company is primarily responsible for Delivery services and pay Couriers for services provided.

Cost of revenue for 2022 is $19.66 billion, increased by $10.3 billion, or 110%, mainly due to a $3.3 billion increase in Freight Carrier payments resulting from the acquisition of Transplace in the fourth quarter of 2021, a $2.7 billion increase in Mobility Driver payments and incentives that are recorded in cost of revenue, exclusive of depreciation and amortization, as a result of business model changes in the UK, a $1.4 billion increase in insurance expense primarily due to an increase in miles driven in Mobility business, and a $1.4 billion increase in Courier payments and incentives.

After deducting all the other expenditure including depreciation & amortization, research & development, the company has reported a loss from operation $1.83 billion, compared to a higher loss of $3.83 a year earlier, the situation has improved. Uber has incurred $7,03 billion in net other expenses in 2022, which was a net other income of $3.29 million a year earlier. Thus, net loss attributable to Uber Technologies, Inc. during 2022 is $9.14 billion, which was $0.50 billion a year earlier. Net loss per share during the years are $4.64 and $0.26, respectively.

Of the total revenue in 2022, 44% comes from the Mobility segment, 34% from the Delivery segment, and 22% from the Freight segment. Revenue of the Mobility segment increased by $7.1 billion in 2022, compared to the earlier year; similarly Delivery revenue increased by $2.5 billion and Freight revenue by $4.8 billion.

Cash position of Uber remained almost same during 2022 as the company has reported $4.21 billion cash on December 31, 2022, which was $4.29 billion in 2021. Total current assets of the company is $9.25 billion at the end of 2022, and $8.82 billion a year earlier. Total assets of the company on December 31, 2022 is $32.11 billion, as compared to $38.77 billion a year earlier. Total current liabilities for the dates are $8.85 billion and $9.02 billion, respectively. Total liabilities are $23.61 billion and $23.43 billion, respectively.

Net cash provided by operating activities in 2022 is $0.64 billion, which was net cash used in operating activities $0.45 billion. Net cash used in investing activities for the years are $1.64 billion and $1.20 billion, respectively. Net cash provided by financing activities is $0.015 billion for 2022, and $1.78 billion for 2021.

Business Overview

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items. The company has the delivery app, Uber Eats, which now includes the applications Postmates, Drizly and Cornershop across different markets.  The delivery segment expanded over the last few years to include now Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises.

uber history

With the massive network of the company around the world, Uber covers approximately 10,500 cities around the world as of December 31, 2022. For the purpose of convenience and ease, the company rolled out in 2020 their “Super App” view on iOS and Android, which combines multiple offerings into a single app and is designed to remove friction for the consumers. During November 2021, the company launched Uber One in the United States as their single cross-platform membership program that brings together the best of Uber. Uber One members have access to discounts, special pricing, priority service, and exclusive perks across rides, delivery and grocery offerings. The company had at the end of 2022 nearly 12 million members for Uber One, Uber Pass, Eats Pass and Rides Pass membership programs.

Uber's Mobility offering competes with personal vehicle ownership and usage, which accounts for the majority of passenger miles in the markets that the company serves, and traditional transportation services, including taxicab companies and taxi-hailing services, livery and other car services. In addition, public transportation can be a superior substitute to Uber's Mobility offering and in many cases, offers a faster and lower-cost travel option in many cities. The company also competes with other ridesharing companies, including certain of their minority-owned affiliates, for Drivers and Riders, including Lyft, Ola, Didi, Bolt, and our Yandex.Taxi joint venture.

Uber's Delivery offering competes with numerous companies in the meal, grocery and other delivery space in various regions for drivers, consumers, and merchants, including Amazon, Deliveroo, Delivery Hero, DoorDash, Gopuff, iFood, Instacart, Just Eat Takeaway, and Rappi. The Delivery offering also competes with restaurants, meal kit delivery services, grocery delivery services, and traditional grocers. Freight offering of the company competes with global and North American freight brokers such as C.H. Robinson, Total Quality Logistics, XPO Logistics, Convoy, Echo Global Logistics, Coyote, Transfix, DHL, and NEXT Trucking.

The business of Uber has seasonality impact in its operating results. The company sees higher Gross Bookings during fourth quarter and lower bookings during third quarter in the year.

Company History

Uber started with a simple idea from the founders - "what is you could request a ride from your phone?" On December, 2008, Uber founders Travis Kalanick and Garrett Camp got stuck in Paris in a cold winter evening and couldn't find a ride. They bore the idea of Uber right there. In March 2009, the two entrepreneurs developed a smartphone app that let people tap a button and get a ride. The first Uber ride was requested on July 5, 2010 - a trip across San Francisco. In December, 2011, Uber goes international by launching its operation in Paris, the same place where the idea came into being.

In early days, the company hired a computational neuroscientist, a nuclear physicist, and a machinery expert who worked on predicting the arrival time for Uber cars more accurately than Google APIs. In July, 2012, the company has introduced UberX, a cheaper option that allowed the drivers to use their non-luxury vehicles. This unit got popularity and was operating in 65 cities by 2013. In July, 2012, the company has also introduced an option where the riders could request on-demand ice cream delivery. The company launched UberKITTENS in October, 2013. This is an idea of connecting cat lovers with kittens. For a price of $30, Uber would deliver a kitten for 15 minutes that cat lovers can snuggle with. UberKITTENS works in cooperation with animal shelters in each market.5

uber kittens

By April, 2014, the company reached the milestone of connecting riders in 100 cities. In August, 2014, the company launches UberPool in San Francisco Bay Area which allows the riders to share a ride and the cost. The company founds Uber Eats during the same month. Uber Eats made its debut in Chicago, LA, and New York City, letting people enjoy on-demand deliciousness. Uber also started its operation in China in 2014 under the name Yōubù; but the operation was sold to DiDi for an exchange of 18% stake in DiDi because of the tough competition Uber faced there.

uber history

Uber reached 1 billion trips on December 30, 2015 after five and a half years after the first trip.

Uber acquired Ottomotto, a self-driving truck company, for $625 million in 2016. The company was founded by Anthony Levandowski allegedly by using trade secrets of his former employer Waymo. Uber settle the lawsuit regarding the use of such intellectual property and reached a deal to use Waymo's technology for it freight transport operations.

In September, 2016, Uber launched a self-driving pilot program in Pittsburgh. Also in the same year, the company has acquired an AI research startup Geometric Intelligence, whose 15 members will form the initial core of the AI Labs team. Uber AI created multiple open source projects such a Pyro, Plato, POET, Ludwig etc. The division Uber AI was shut down in May, 2020.6

On May 10, 2019, Uber became a public company via an initial public offering. The company priced its IPO at $45 per share and hoped to achieve $100.00 billion valuation. But the IPO fell flat and the share was trading $42 per share on the day of its debut, about 7.6% down.7

In summer of 2019, the company announced layoffs of 8% employees including elimination of the post COO. The announcement came as the CEO Dara Khosrowshahi, who replaced Kalanick in August 2017, wanted to have more direct control over the core business areas. The Chief Marketing Officer Rebecca Messina also stepped down in that bid.8

Uber acquired Careem, its Middle-Eastern competitor for $3.1 billion in January, 2020.9 During the same month, the company sold its Indian Uber Eats operation to its competitor Zomato there.

uber acquires careem

In May, 2020, Uber lays off about 14% of its workforce in awake of the pandemic. In December, 2020, Uber acquired Postmates for $2.65 billion. Postmates is a leader in delivering favorite restaurants and a whole lot more on-demand. The platform gives customers access to the most selection of merchants in the US with more than 600,000 restaurants and retailers available for delivery and pickup. The market leader in Los Angeles, Postmates covers 80% of US households, across all 50 states.10

In October, 2021, Uber acquired Drizly, an alcohol delivery service for $1.1 billion in cash and stock. The company has acquired Australian car-sharing company Car Next Door in January 20, 2022.

  1. ^ https://thehackernews.com/2022/09/uber-blames-lapsus-hacking-group-for.html
  2. ^ https://www.bbc.com/news/technology-62925047
  3. ^ https://www.businesswire.com/news/home/20221006005240/en/Uber-Partners-with-Marqeta-Mastercard-and-Branch-to-Launch-New-Uber-Pro-Card-Offering-Faster-Payments-and-Fuel-Rewards-for-Drivers
  4. ^ https://www.uber.com/en-GB/blog/driver-terms-faq/
  5. ^ https://www.forbes.com/sites/andrewbender/2015/10/29/uber-delivers-kittens-prepare-for-cuteness-overload/?sh=45aaf1b73fa0
  6. ^ https://www.uber.com/newsroom/ailabs/
  7. ^ https://www.cnbc.com/2019/05/10/uber-ipo-stock-starts-trading-on-the-new-york-stock-exchange.html
  8. ^ https://techcrunch.com/2019/06/07/uber-coo-chief-marketing-officer-are-out/
  9. ^ https://laffaz.com/uber-closes-the-acquisition-of-middle-eastern-rival-careem-for-3-1-billion/
  10. ^ https://www.businesswire.com/news/home/20201201005727/en/Uber-Completes-Acquisition-of-Postmates
Tags: US:UBER USA
Created by Md. Touhidul Islam on 2023/03/31 09:58
     
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