Uber: Sum-of-Parts Highlights The Significant Undervaluation [In-depth]

Uber’s 4Q19 results highlight an accelerated path to EBITDA profitability. Eats is also showing encouraging progress amid a competitive food delivery landscape. The market is giving Uber little to no credit for its ability to hit post-FY21 profitability targets. Uber’s ride-sharing business appears significantly undervalued on a sum-of-parts basis. While consensus continues to focus on Uber as a premier ride-sharing company, I’d argue that Uber has evolved into a mix of high-quality businesses that remain in investment mode, as well as poor quality businesses that should be divested. The recent Eats India exit confirms the relative ease Uber has in…