Pitchbook Analysis Note: Uber's S-1; Mo' Money, Waymo Problems

Published Monday, April 15, 2019

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.

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