"Ride-sharing and food delivery giant Uber ( NASDAQ:UBER) has continued to see strong growth, as consumers look for ways to bypass high insurance and auto loan rates by going without a vehicle (or an extra auto) in this era of rising prices for seemingly everything. While the company's delivery platform has seen more subdued growth of late, Uber's core ride sharing platform continues to see strong growth, with around 23% constant currency growth seen year over year in the company's recent results."
"Additionally, what most investors like about Uber's underlying model is the capital-light nature of this business, with a highly scalable infrastructure in place to handle millions (or billions) of additional rides at little extra cost. As the thesis has unfolded around economies of scale and overall scalability, Uber's valuation has continued to soar. This is a company that's used it"
Bill Ackman's Pershing Square Capital Management maintains a highly concentrated portfolio, with the top three holdings representing more than 50% of assets. Uber, one of the largest positions, operates both ride-sharing and food delivery services and has continued to grow as consumers sometimes opt to forgo vehicle ownership amid rising insurance and loan costs. Uber's delivery growth has slowed while its core ride-sharing business delivered roughly 23% constant-currency year-over-year growth in recent results. The company's capital-light model and scalable infrastructure enable significant incremental rides at low marginal cost, contributing to a soaring valuation.
Read at 24/7 Wall St.
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