Manley attributes this optimistic outlook to Uber’s strong market position. He emphasizes the company’s robust asset base, which includes three key components: an industry-leading network, advanced technology, and significant brand equity. According to Manley, Uber’s multi-platform network is more than three times larger than that of its closest competitor in the gig economy. This extensive reach positions Uber favorably for the anticipated rise in Autonomous Vehicle (AV) adoption.
“Our BUY thesis is underpinned by the company’s asset base consisting of industry-leading 1) network, 2) technology, and 3) brand equity,” Manley stated. He further elaborated on the ongoing debate surrounding AVs, noting that it remains a crucial factor influencing market sentiment. While bullish investors highlight the potential for market expansion, skeptics raise concerns about the risks of disintermediation.
Manley projects that AVs could account for 20% of the overall U.S. rideshare market by 2035, with international markets experiencing a lag of 5 to 10 years. He believes that Uber’s leading demand will benefit significantly from the increased supply of AVs.
Interestingly, despite Guggenheim’s optimistic outlook, Uber shares experienced a slight decline in premarket trading. However, the overall sentiment among analysts remains positive. According to LSEG data, 43 out of 54 analysts currently rate Uber as a buy or strong buy.
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