Uber (UBER) – New York City, The UK & S&P 500 – December 1, 2023
New York City
New York’s state court rejected a minimum wage appeal from food delivery providers like UberEats and DoorDash. This will mean Uber must pay drivers a minimum of $18 per hour. This shouldn’t be an issue. Why? Leadership explicitly told us on the last earnings call that Uber drivers average $50 per utilized hour in earnings. They’re already doing a lot better than $18 per hour. Uber has incentive to take good care of drivers. Why? More drivers mean lower surcharges and wait times for riders. That means more riders, which in turn means more successful drivers. It’s a powerful positive feedback loop.
UK & S&P 500
- Uber’s platform will open up to popular Black Cabs in London next year.
- Uber will join the S&P 500 this month. I don’t think anyone in 2022 anticipated them becoming eligible so quickly. GAAP profits have simply ramped far more meaningfully than anticipated (like I said would happen).
