UBER equity, debt and subsidiaries

Accuracy score :
97%

Summary (from the latest annual and quarterly report)

  • Total equity: 15.9 billion USD
  • Market Cap is 54.16 billion USD ( the last price of the stock is 31.86 USD)
  • Uber Technologies, Inc. develops and supports proprietary technology applications that enable independent providers of ridesharing, and meal preparation and delivery services to transact with end-users worldwide
  • Total stockholders' equity has increased from 10.3 billion USD in 2018 to 15.9 billion in 2019
  • The company has 11.7 billion USD in cash on account (from the latest quarterly report  2019)
  • Total equity – cash on account = 15.9 billion USD – 11.7 billion USD = 4.2 billion USD
  • In 2019 the company has 4.52 billion USD long-term debt, short – term debt is 1.67 billion USD
  • (In 2017 the company had 3 billion USD long-term debt, short-term debt was 480 million USD)
  • The company's revenue has increased in 2018 to 11.27 billion USD from 7.93 billion in 2017
  • Net income in 2018 was 997 million USD, Net loss in 2017 was 4.03 billion USD

 

Opinion about the company

Fundamentally it is a not bad company and in the future we can expect its growth (Total debt is 6.19 billion USD, big amount of cash on company's account, ROE is negative: around -45 %).

 

Uber Technologies, Inc. is an American multinational transportation network company (TNC) offering services that include peer-to-peer ridesharing, ride service hailing, food delivery, and a bicycle-sharing system. In addition, the Company also provides freight transportation services to shippers within the freight industry and leases vehicles to third-parties that may use the vehicles to provide ridesharing or Eats services through the Platforms. Uber was incorporated in Delaware in July 2010, and is headquartered in San Francisco, California. On May 14, 2019 , the Company closed its initial public offering (“IPO”), in which it issued and sold 180 million shares of its common stock. The price was $45.00 per share. The Company received net proceeds of approximately $8.0 billion from the IPO after deducting underwriting discounts and commissions of $106 million and offering expenses.

The Company is a technology company that is powering movement in countries around the world, principally in the United States (U.S.) and Canada, Latin America, Europe, the Middle East, and Asia (excluding China and Southeast Asia). As of 2019, Uber is estimated to have 110 million worldwide users a 69.0% market share in the United States for passenger transport, and a 25% market share for food delivery. Uber uses a dynamic pricing model; prices for the same route vary based on the supply and demand for rides at the time the ride is requested. Uber drivers use their own cars although drivers can rent or lease a car to drive with Uber. While Uber is viewing drivers as contractors, courts in the United Kingdom and Switzerland consider their drivers to be employees of the company.

The Company has organized its operations into two operating and reportable segments: Core Platform and Other Bets. Core Platform primarily includes the ridesharing and Uber Eats products; while Other Bets primarily includes the Company’s Freight and New Mobility products. Its driver partners provide ridesharing services through a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis, as well as based on the number of riders under the UberBLACK, UberX, UberPOOL, Express POOL, and Uber Bus names; and restaurant and delivery partners provide meal preparation and delivery services under the Uber Eats name. In June 2019, the Company announced a number of leadership and organizational changes. The Company is currently evaluating the impact to its operating and reportable segments based on how the businesses will be managed subsequent to the changes.

  • The Company derives revenue primarily from fees paid by Driver Partners for the use of the Company’s platform and related service to facilitate and complete ridesharing services.
  • Core Platform represents 95% of total revenues
  • Other Bets segment represents 5% of total revenues
  • Core Platform contribution profit for the three and six months ended June 30, 2019 decreased $149 million and $693 million to $220 million and $103 million compared to $369 million and $796 million , respectively, in the same periods in 2018. This was driven by a decrease in our Core Platform Take Rate of 4% to 17% and 3% to 18 %, respectively for the three and six months ended June 30, 2019 compared to 21% and 21% in each of the same periods in 2018 , and an increase in sales and marketing expenses. The decline in Core Platform Take Rate and the increase in sales and marketing expenses were driven by increased Driver incentives and consumer discounts, promotions, refunds, and credits as we invest in this platform
  • Uber posted a drastic 5.2 billion USD loss of for the second quarter of 2019. The loss included 3.9 billion USD of "stock-based compensation expenses" related to the IPO, and an operating loss of 1.3 billion USD. Facing continued losses, the marketing department headcount was reduced by a third on July 29, 2019 with the lay-off of 400 people
  • Uber is funded by 100 investors. PayPal and Toyota Motor Corporation are the most recent investors

 

Standalone subsidiaries and acquisitions:

  • In August 2016, after facing tough competition in China, Uber sold its operations in China to DiDi, in exchange for an 18% stake in Didi (worth around 14 billion USD). Didi also agreed to invest $1 billion into Uber Global
  • Uber acquired American self-driving technology company Otto for 625 million USD in 2016
  • In March 2018, Uber merged its services in Southeast Asia with those of Grab in exchange for a 27.5% ownership stake in Grab worth around 1.6 billion USD
  • On March 26, 2019, the Company entered into an asset purchase agreement (the “Agreement”) with Careem Inc. Careem is a Dubai-based company that provides ridesharing, meal delivery, and payment services across the Middle East, North Africa, and Pakistan. The acquisition is subject to applicable competition authority approvals in certain of the countries in which Careem operates. The closing is expected to occur in January 2020. The deal is worth approximately 3.1 billion USD
  • Uber had also several smaller acquisitions (Mighty Al, Swipe Labs, Decarta..) worth around 300 million USD

 

Total = 19.6 billion USD

In November 2017, Uber announced a non-binding plan to buy up to 24,000 Volvo XC90 SUV vehicles designed to accept autonomous technology (including a different type of steering and braking mechanism and sensors) between 2019 and 2021. In April 2019, Uber scientist Raquel Urtasun offered a more cautious estimate of the company’s eventual self-driving capabilities, saying "self-driving cars are going to be in our lives. The question of when is not clear yet. To have it at scale is going to take a long time.

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