Uber Planning to Spin-Off Postmates X – Report


Uber is planning to spin-off recently acquired Postmates X into a new startup company called Serve Robotics, according to TechCrunch.

Two years ago, Uber (UBER) had multiple initiatives across the transportation landscape, including ride-hailing, logistics, public transit, food delivery and futuristic bets like autonomous vehicles and air taxis, TechCrunch reports, adding that since going public in 2019, Uber has streamlined its business and has offloaded many of its investments in an attempt to push the company towards profitability.

The COVID-19 pandemic has put pressure on Uber as lockdowns and travel restrictions impacted the demand for ride-hailing services. However, TechCrunch explained that the success of Uber Eats drove the company to strengthen its position in the food delivery space.

Uber bought Postmates X last year for $2.65 billion and according to TechCrunch, will retain an ownership stake in the new startup in exchange for the IP and Postmates’ assets.

Postmates’ Serve robots are electrically powered, can carry 50 pounds and travel 30 miles on a single battery charge. They answer the question, “Why move two-pound burritos with two-ton cars?”, according to the head of Postmates X, Ali Kashani. (See UBER stock analysis on TipRanks)

BTIG analyst Jake Fuller reiterated his Buy rating on Uber 11 days ago and raised his price target from $65 to $70. (26% upside potential).

Fuller revised his 2022-2025 delivery bookings higher and also assigned a higher revenue multiple for Uber Eats. Fuller raised his FY21 EPS view on Uber by 12c to ($1.19).

Consensus among analysts is a Strong Buy based on 21 Buys and 2 Holds. The average price target of $60.68 suggests upside potential of around 9% over the next 12 months.

Uber scores perfect 10 on Tipranks’ Smart Score rating, indicating that it has a strong chance of beating market expectations.

Related News:
China’s Tencent Music To Snap Up Lazy Audio For $417M; Street Is Bullish
Facebook’s WhatsApp Delays Privacy Update
Tesla Begins Delivery Of Shanghai-Made Model Y Cars In China – Report

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts