Thursday, Feb 11th 2021

Uber unveils new details around Drizly deal


On Wednesday after hours, Uber reported mixed Q4 results, with adjusted revenue falling -2% short of expectations and profit margins coming in nicely ahead.

We believe the shortfall on revenue was mostly attributable to weakness on the rides side, which saw its mix of bookings come from more lower take rate countries / regions than expected.

This wound up masking the company's tremendous growth in its delivery segment, which grew more than 220% year-over-year.

We believe the expansion of Uber's delivery platform will be key to unlocking its future as an operating system for urban living.

Part of that thesis recently took on a new leg following Uber's recently announced acquisition of drinks delivery platform Drizly.

On the investor call, management revealed that Drizly was growing over 300% year-over-year and was already profitable on an EBITDA business

We believe Uber will benefit from material cross-selling synergies by integrating Drizly within its broader ecosystem, and also think it will benefit from seeing a significant average order value uplift.

Stepping back, we were pleased with Uber's performance on the delivery side this quarter, and see the company well on track to hit its marquee 2021 profitability targets.

As of this writing, UBER was a portfolio holding of Titan. This security may cease to be a portfolio holding at some point in the future.
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