Stock Analysis & Valuation Uber Technologies, Inc. (UBER.SW)

• Previous Close: CHF69.75
• Sector Valuation Confidence Level: Low

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	4.70	-93
Graham Formula	17.20	-75

Strategic Investment Analysis

Company Overview

Uber Technologies, Inc. (UBER.SW) is a global leader in mobility and delivery services, operating in over 70 countries. The company leverages proprietary technology to connect consumers with ride-hailing, food delivery, and freight logistics services. Uber operates through three core segments: Mobility (ridesharing), Delivery (meal and grocery delivery), and Freight (logistics and shipping solutions). Headquartered in San Francisco, California, Uber has revolutionized urban transportation and last-mile delivery, capitalizing on the gig economy and digital transformation trends. With a market cap of CHF 94.4 billion, Uber is a dominant player in the Software - Application sector, continuously expanding its ecosystem through strategic partnerships and technological innovation. The company’s diversified revenue streams and global footprint position it as a key disruptor in the transportation and logistics industry.

Investment Summary

Uber presents a compelling investment case with strong revenue growth (CHF 37.3 billion in FY 2023) and a return to profitability (net income of CHF 1.89 billion). The company benefits from a scalable platform, global brand recognition, and diversified business lines, including high-growth delivery and freight segments. However, risks include regulatory challenges in key markets, reliance on gig workers, and competition from regional players. Uber’s high beta (1.34) suggests volatility, but its robust operating cash flow (CHF 3.59 billion) and solid liquidity (CHF 4.68 billion in cash) provide financial flexibility. The lack of dividends may deter income-focused investors, but growth-oriented investors may find Uber’s market leadership and innovation appealing.

Competitive Analysis

Uber’s competitive advantage lies in its first-mover status, extensive global network, and data-driven platform optimization. Its Mobility segment benefits from strong brand loyalty and a dense driver-rider network, creating high barriers to entry. The Delivery segment competes with pure-play food delivery firms but leverages Uber’s existing driver base for cross-segment efficiency. The Freight segment differentiates through transparent pricing and real-time logistics tracking. However, Uber faces intense competition in all segments. In Mobility, regional players with deeper local knowledge (e.g., Bolt in Europe) challenge its dominance. In Delivery, Uber Eats competes with specialized platforms like DoorDash, which has a stronger U.S. foothold. Regulatory pressures, particularly around driver classification, remain a persistent risk. Uber’s scale and technological edge (e.g., AI-driven routing, dynamic pricing) help maintain its leadership, but profitability hinges on continued international expansion and cost discipline.

Major Competitors

• Lyft, Inc. (LYFT): Lyft is Uber’s primary U.S. rival in ride-hailing, with a focus on North America. It lacks Uber’s global scale and diversified revenue streams but has a strong brand in shared rides and partnerships with transit agencies. Lyft’s smaller market cap and narrower geographic focus limit its competitiveness against Uber’s broader ecosystem.
• DoorDash, Inc. (DASH): DoorDash leads the U.S. food delivery market, outperforming Uber Eats in domestic market share. Its strengths include a vast restaurant network and DashPass subscription loyalty program. However, DoorDash lacks Uber’s mobility segment, making it more vulnerable to sector-specific downturns.
• Grab Holdings Limited (GRAB): Grab dominates Southeast Asia’s ride-hailing and delivery markets, with deep regional integration (e.g., payments, fintech). Its super-app strategy poses a threat to Uber in emerging markets, but Grab’s profitability challenges and narrower geographic focus limit its global rivalry.
• DiDi Global Inc. (DIDI): DiDi is China’s ride-hailing leader but has faced regulatory crackdowns, hampering growth. Its strengths include a near-monopoly in China and AI-driven mobility solutions, but geopolitical risks and lack of international diversification weaken its position against Uber.
• Just Eat Takeaway.com N.V. (POST.AS): A major European food delivery player, Just Eat Takeaway competes with Uber Eats in key markets like the UK and Germany. Its asset-light model and acquisitions (e.g., Grubhub) provide scale, but profitability struggles and overextension in competitive markets are weaknesses.