What is Uber?
Uber Technologies provides a world famous platform for transportation and food ordering services. Since its inception in 2009, Uber has revolutionised passenger transportation, proving itself as a popular ride-hailing app.
It all began with an exclusive on-demand black car service for wealthy people. Later on, the company broadened its customer base by introducing the low-cost ride-sharing service UberX.
Today it operates in 69 countries and 900 cities around the globe. In Q2 2021 it reported 100m active users making 1.5bn trips.
Headed by Dara Khosrowshahi since 2017, Uber extended its business from a simple “tap a button, get a ride” concept to something much more comprehensive. Today the company operates in two major sectors: Core Platform and Other Bets.
Its Core Platform includes Ridesharing and Uber Eats, while the Other Bets segment covers New Mobility platforms and Uber Freight.
- Ridesharing services connect consumers to drivers in various vehicles, including cars, motorbikes, taxis and minibuses.
- Uber eats allows clients to find local restaurants and order meals online.
- Freight platform provides an on-demand marketplace for shippers and carriers.
- New Mobility service provides clients with rides on e-bikes and e-scooters.
Uber went public in May 2019. Shares of a ride-sharing company are listed and traded on the New York Stock Exchange under the ticker abbreviation UBER.
Uber shares trading hours
UBER shares are traded on the NYSE stock exchange according to the regular trading session schedule (EST):
- Pre-Market trading hours from 7:00 to 9:30
- Market hours from 9:30 to 16:00
- After-Market hours from 16:00 to 20:00
- Monday to Friday from 14:30 to 21:00
How to trade Uber CFDs?
An individual has two options when trading in the stock market. Firstly, they can buy shares in companies on the exchanges where they are listed. For instance, you can invest in UBER shares on the NYSE stock exchange, so you actually own a share in the company. This can be considered a long-term investment, as the individual is usually waiting for the price to rise over time.
Alternatively, they can trade Uber shares through a contract for difference (CFD) and speculate on the price difference of the underlying asset, without actually owning it. A CFD is a financial contract, typically between a broker and an investor, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade. Uber share trading allows you either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). This is considered a short-term investment or trade, as CFDs tend to be used within shorter timeframes.
The key difference between trading a long position with a CFD and buying a security is the leverage that is employed. CFDs are traded on margin, which means that a trader can open larger positions with their capital.
Trade Uber Technologies Inc - UBER CFD
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Trading on margin: Providing trading on margin (up to 5:1 for individual equities), Capital.com gives you access to Uber stock with the help of CFDs.
Trading the difference: When trading an UBER CFD, you do not buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the UBER stock’s value. CFD trading is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop and limit losses and apply trading scenarios that align with their objectives.
All-round trading analysis: The browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android.
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History of Uber
Uber started in 2009, when Travis Kalanick and Garrett Camp introduced their luxury black car on-demand service.
Spreading like wildfire, Uber has transformed the ride-hailing industry and became available across the globe. The first conquered city was Paris, France in 2011, followed by India and Africa.
In 2013, In addition to its black-car service the company launched a low-cost UberX ride-sharing service, which became a hit. The service was 35 per cent less expensive than original black cars and allowed anyone with a car and a licence to become a company’s freelance driver.
During its history, Uber undertook three series of investments:
- Series A funding round, February 2011: Uber gets $11 million. The company values at $60 million.
- Series B funding round, December 2011: Uber closes a deal for $32 million with Menlo Ventures, Goldman Sachs and Amazon CEO Jeff Bezos.
- Series C funding round, August 2018: Uber gets an enormous $258 million investment from Google Ventures. This round values Uber at $3.76 billion.
In December 2013 Uber suffered from a huge lawsuit from 35,000 Uber drivers, claiming to be treated as employees, not contract workers.
In 2014 Uber entered the Chinese market, which offered the potential to become the company's largest market.
In April 2015 Uber started the UberEats service, which became another hit. The service is designed to bring meals to your location in minutes.
In July 2016 Uber announced that it had completed its two billionth ride, just six months after reaching one billion, a prime example of the “network effect”.
In August 2017 Dara Khosrowshahi stepped in as Uber’s CEO after the resignation of Kalanick.
In April 2019 Uber officially filed papers to go public on the New York Stock Exchange under the ticker symbol UBER.
In April 2019 Uber officially filed papers to go public on the New York Stock Exchange under the ticker symbol UBER. In May it offered 180 million shares at $45 each - the biggest IPO of the year. The share price dropped 11% on its opening day - making it the biggest one day dollar loss in history - and it has been a turbulent journey since going as low as $21.33 in March 2020. By October 2021 it had recovered to $46.6 up 28%.
In its second quarter statement in August 2021, Uber announced gross bookings had more than doubled on the same period last year to $21.9bn. Revenues of $3.93bn produced an operating loss of $1.19bn and EBITDA loss of $509m.
Uber stock history chart
Uber share price history started in May 2019 when Uber finally went public. Investing in Uber stocks began at $45 per share and the initial market cap of $75.5 billion. By the end of the first day UBER stocks performance dropped to $41.57, bringing the IPO investors a cumulative loss of $655 million.
Giving his comments on Uber’s Q3 earnings report in 2019, CEO Khosrowshahi said: “We know there is the expectation of profitability, and we expect to deliver for 2021.”
What factors affect the UBER stock price?
As with any equity, quarterly earnings announcements, as well as the financial performance of the wider stock market are two crucial factors to watch when deciding how UBER stock will perform.
According to its recent Q3 2019 earnings report, Uber reported a net loss of $1.16 billion for the quarter. However, the revenue for its most established segment – rides – increased 19 per cent year over year to $2.90 billion.
Revenue for Uber Eats food delivery service, grew 64 per cent year over year, reaching $645 million. Uber Freight service grew 78 per cent year over year, coming to $218 million for the quarter.
Considered a corporate anomaly with exponential business growth but huge losses all while enduring a series of ethical and legal scandals, Uber attracts traders and investors as a liquid stock with a big potential for volatility.
Who are Uber’s main competitors?
In its IPO filing Uber named the following direct competitors:
- Ride-hailing: Lyft, Didi, Careem, Taxify, Ola and Yandex.Taxi
- Personal mobility businesses: Motivate (owned by Lyft), Bird, Lime and Skip
- Food delivery businesses: DoorDash, GrubHub, Delivery Hero, Deliveroo, Swiggy, Zomato, Postmates, Just Eat, Takeaway.com and Amazon.
- Freight businesses: Total Quality Logistics, C.H. Robinson, XPO Logistics, Echo Global Logistics, Convoy, Coyote, DHL, Transfix and NEXT Trucking.
- Driverless vehicle firms: Apple, Alphabet’s Waymo, Zoox, GM’s Cruise Automation, Tesla, Aptiv, Pronto.ai, May Mobility, Nuro and Aurora.