Investment report April 2025 - View into the portfolio

Uber: the world's largest mobility platform on a growth path 
 

Since it was founded, Uber has developed into a global giant - and now operates the world's largest mobility platform with almost 8 million drivers and delivery drivers. The company is active in more than 70 countries and has around 160 million active users every month. An impressive network that harbours enormous potential, both geographically and economically.

Uber presents a particularly convincing business model with transparent revenue distribution. 20-25% of the fare remains with the company as revenue, 75-80% goes directly to the drivers. From the driver's perspective, the platform offers two decisive advantages: Firstly, the system significantly minimises idle times, which optimises revenue. Secondly, the innovative ‘surge pricing’ - a dynamic pricing system that reacts to fluctuations in demand in real time - ensures more attractive earning opportunities at peak times. This sophisticated concept creates a synergetic partnership between Uber and its drivers. Customers, in turn, benefit from the excellent user experience of the intuitive app and the comfort of knowing that they will not be confronted with unexpected cost increases at the end of their journey.

Uber broke into the profit zone in 2023 with a net profit of around USD 620 million. But this is just the beginning: profits of USD 5.7 billion are expected as early as 2025, rising to over USD 10 billion by 2027 - driven by strong user growth and efficiency gains. The picture looks even better when looking at the free cash flow, which reflects an even more robust financial situation.

Uber is in a solid financial position. The balance sheet remains stable despite expansion: as at 31 December 2024, net debt was just USD 2.8 billion. This allows the company to invest flexibly and react to changes in the market.

The global market potential is far from exhausted. Uber's market share in the mobility and delivery services sector is currently only 0.2% to 7% - an indication of how much growth is still possible here.

Despite this strong outlook, Uber is trading at an expected P/E ratio of just 28 in 2025 - with earnings growth of over 30% per year. This is due to ongoing concerns around autonomous driving and regulatory risks. However, this could be an attractive entry point for long-term investors.

To summarise, it can be said that Uber has established itself as the central platform for mobility and delivery worldwide. With solid finances, a clear business model and enormous expansion potential, the company remains an exciting player - both operationally and from an investor's perspective.

Yours sincerely

Johannes Hesche             Tobias Engl