Investing.com – Uber Technologies Inc According to a note from Jefferies analysts, (NYSE:)’s recent stock dip provides an attractive entry point for investors. At a time when concerns about potential competition from autonomous vehicle (AV) technology have weighed on the stock, Jefferies notes that the near-term impact on Uber’s core business is expected to be minimal.
“We believe the recent weakness creates a more attractive entry point for UBER,” Jefferies analyst Thill wrote in the note. “The short-term impact on ridesharing will be minimal and we believe robotaxi fleets are best off when they collaborate with ridesharing.”
Contrary to market concerns, Thill sees Uber “uniquely positioned” to benefit from robotaxis through partnerships with AV developers, where it can leverage its infrastructure, customer base and operational expertise, increasing the use and efficiency of robotaxi fleets is increased.
We also believe that AV developers will ultimately choose to collaborate rather than pursue a standalone fleet,” the note said.
From a cost perspective, Jefferies estimates that standalone robotaxi fleets will face higher operating costs, $14.51 per ride, compared to fleets that partner with a rideshare platform like Uber, which could cost $11.19 per ride.
The difference is largely due to the lower utilization rates of standalone fleets, which must maintain higher inventories to meet peak demand. Standalone robotaxi operators may therefore struggle with price flexibility and may need to offer discounts to lure customers from established rideshare services.
Thill reiterated his buy rating on Uber shares, with a price target of $100.
