As Uber said it is on course to its first ever profitable quarter, its share prices recovered (again) to its IPO levels:
Now do you remember the headlines in 2019, when Uber was preparing for its IPO, that “Uber may never make a profit”?
If you have seen enough IPO prospectus, you would know that that risk disclosure was nothing too significant. Grab made a similar risk disclosure in its F4, even though it is making firm steps towards profitability.
As Uber debuted on the NYSE in May 2019, we said that it should learn from Grab’s super app strategy to become more viable. A year later, we wrote another short commentary on why Uber was better than rival Lyft.
It turned out that food delivery was indeed the major booster for Uber, even (or especially) during the pandemic.
What is the real threat for Uber? DoorDash. You can see from the following graph (which now is a little bit old but not by much):