Uber Inc. (UBER) Can Reach High Single Digit Take Rates on Delivery, Morgan Stanley Shows How

Morgan Stanley analyst Brian Nowak reiterated an Overweight rating and $72.00 price target on Uber Inc. (NYSE: UBER) on the belief that the company can generate high single digit rev take rates as it scales On-Demand Delivery. The analyst sees 2 key points to on demand profitability:

1) delivery fees and/or incremental subscription revenue streams are critical to scaling profitably

2) the order batching opportunity is one source of material upside

To reach the high single digits take rate the analyst used the following example: "in this base assumption of a $70 basket size, we estimate Uber will generate ~$8 per transaction (or ~9% effective take rate). Uber also has an asset light commission-like relationship with GoPuff that we estimate will yield a ~7.5% effective take rate."

For an analyst ratings summary and ratings history on Uber Inc. click here. For more ratings news on Uber Inc. click here.

Shares of Uber Inc. closed at $48.08 yesterday.

You May Also Be Interested In

• Midday movers: Tesla, Boeing rise; Uber, Old Dominion Freight fall
• H.C. Wainwright Downgrades Argo Blockchain ADR (ARBK) to Neutral
• Dover Corp. (DOV) PT Raised to $185 at Mizuho