UBER – Market expectations are for a material positive inflection in Uniform ROA, but management has concerns about rising competition, margins, and their brand

• Uber Technologies, Inc. (UBER:USA) currently trades at a significant premium relative to UAFRS-based (Uniform) Assets, with a 17.2x Uniform P/B. At these levels, the market is pricing in a substantial profitability inflection; however, management appears concerned about intensifying global competition, margin pressures, and their brand
• Specifically, management appears concerned about rising competition from DiDi in South America, and may lack confidence in their ability to compete more on brand and product. Furthermore, they may lack confidence in their ability to increase the percentage of MAPCs that use both Eats and Rideshare, and may appear concerned about the impact their Eats business has on margins