Gerstner says Uber's rideshare margins went from negative 20% to over 30% in six quarters.
“I think their segment EBITDA margins in January and February for rideshare were over 30%. I believe six quarters earlier, they were negative 20%.”
Gerstner says Uber's rideshare EBITDA margins went from negative 20% to over 30% in six quarters.
“Uber just reported their quarterly reports and I think their segment EBITDA margins in January and February for rideshare were over 30%. I believe six quarters earlier, they were negative 20%.”
Gerstner says Uber went from losing $2.5B to profiting $3.5B in free cash flow under Khosrowshahi.
“The company went from losing over 2,500,000,000 or around 2,500,000,000 when Dara took over to profiting over 3,500,000,000, and we're talking free cash flow.”
Gerstner notes consensus forecasts Uber reaching almost $10B in free cash flow in a few years.
“if you look at the consensus forecast for the business, which is pretty mind boggling, it's estimated by the consensus that it'll reach almost 10,000,000,000 in free cash flow, just a few years from now.”
Gerstner argues Khosrowshahi's capital markets expertise was critical fit for cash-hemorrhaging Uber needing focus.
“Uber at the time was hemorrhaging cash, needed to get rid of some divisions, needed to focus on the core.”
Gerstner believes robotaxis pose a fundamental risk to Uber's business model.
“I I I think this does pose a risk fundamentally to the Uber business model.”
Gerstner declares robotaxi services will come from Waymo, Tesla, and Chinese companies partnering with Uber.
“I'm absolutely convinced Robotaxia is coming. It's coming from Waymo. It's coming from Tesla, and it's coming from others around the world and many in China that Uber is partnering with around the world.”
Gerstner doubts Uber's partnerships can match Tesla's full stack autonomous solution.
“I just don't have the confidence yet that that has fully come together and is really going to be able to stand up to the full stack solution that Tesla has.”
Gerstner has added a small Uber position in recent weeks during pullbacks.
“We actually have a small slice of of Uber in our portfolio today that we've added right over the course of the past few weeks on some of these pullbacks.”