Pitchbook Analysis Note: Uber's S-1; Mo' Money, Waymo Problems
Uber's recent S-1 filing confirms a continuation of recent trends, which PitchBook emerging technology analysts believe justifies a lower multiple for the company than Lyft. This analyst note responds to financial and ridesharing metrics the public has seen for the first time.
Key takeaways from the S-1 include:
- A continuation of slowing revenue growth and margin pressure, which our analysts believe justifies a lower multiple for the company relative to Lyft.
- While bookings growth was robust through the end of the year, take rates fell significantly for Uber Eats, which is having a negative impact on overall net revenue growth as well as overall margin mix.
- The reduced expected valuation range of Uber is justified, given the price at which Lyft is trading and Uber’s relatively lower growth rate and margin profile.
- Uber calls out the threat of Google’s Waymo unit, which we believe presents a very long-term risk. A more near-term risk may be Uber’s dependency on Google Maps.