Good News for Uber Stock Holder – The Ridesharing Giant Is Working on a Super App
Author: George Davis
Reasons why Uber stock price will increase
Despite the increase in demand for Uber’s food delivery via Uber Eats, the ridesharing giant has faced several issues in generating profits during the pandemic. As COVID-19 restrictions are lifted slowly, people have started to use mobility service again, and this has put Uber in the investors’ eyes. If you have purchased Uber stocks, you will be satisfied to know that Uber is soon coming into the limelight again.
Here are three reasons why Uber stock might increase.
3 Reasons Why Uber Stock Price Will Increase
1. Uber Is Working on a Super App
Uber is working on a fantastic app that will get you and your belongings from point A to point B as quickly as possible. This innovative version of Uber’s app can transport people, meals, prescribed drugs, alcohol, or anything you want with just a tap of a few buttons. In an interview, Dara Khosrowshahi, the CEO of Uber, said, “The way I think about the new Uber is this: if Amazon owns ‘next day,’ we want to own ‘next hour.’” Hence, Uber has decided to integrate Uber Eats with the original Uber app. This integration ensures that users don’t have to download a separate app, and Uber doesn’t have to spend on promoting another app.
2. Returning Without Losing Uber Eats Customers
Despite heavy COVID-19 restrictions and the threat of the pandemic, Uber hasn’t met any disappointment in its delivery business. Last month, CFO Nelson Chai said Taiwan had seen a 45% year-over-year increase in its mobility gross booking in February. In contrast, delivery gross booking growth decelerated slightly in January. Later, in the investor’s conference, Nelson said that Miami would represent consumer behavior throughout the USA. Although mobility was down by 25%, delivery tripled in revenue.
3. Combining the Best Together
One of the critical factors that determine Uber’s rise in 2021 is that Uber is not just interested in restaurants and passengers. It has now transitioned to a broader market where anything that fits in the back of the car can be delivered. Moreover, leaping into the alcohol and medical drug market can prove to be beneficial for the company. Nelson is confident that each new vertical will prove to be fruitful for Uber. Lastly, Uber has already made a name in the market for its mobility services. Combining Uber Eats and Uber Ridesharing would make it easier for the consumer to order the other through a singular platform.
The Bottom Line
Uber is the biggest ridesharing company with a solid customer base. It will take a lot more than a lockdown to bring Uber down. During the recent lockdown, consumers ordered food from Uber Eats, and now, with the restrictions being lifted, Uber is set to make its return. Lastly, Uber has decided to combine Uber Eats and Uber to make it convenient for the user to use both apps singularly. All of these changes show a promising future for Uber stockholders.
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