All right. The two biggest names in the rideshare
industry reported earnings this week Uber and lift, both
beating Wall Street expectations on their top and bottom lines
and it comes as the companies and the ride sharing
industry have recently faced several challenges like the pandemic,
the supply chain crisis and driver shortages here to break
down earnings from Uber and lift and the state of
the rideshare industry, ceo of johnson Research group chris
, johnson chris thanks so much for joining us.
What stands out to you most from these earnings reports
from both Uber and lift. You know when you
look at the earnings reports, you had to get
down into them to find the trend that's really gonna
pay off over the longer term for them and that
comes down to drivers, whether it's the drivers and
the amount they're making the differences in the surge pricing
now you're seeing a surge pricing start to come down
a little as more drivers are coming on board,
all of that equates to an equation, not to
pete duplicitous there, but puts together an equation that
as the pandemic fears start to lower, we're going
to see these rideshare industry companies start to take off
again, they've had to survive for the last year
and a half going out and do what they needed
to do in order to maintain themselves. So from
my perspective, as a fundamental analysis or analyst,
I like the outlook more so from a technical perspective
too, when I look at these two companies that
are coming out of some strong technical bounces now?
So technical buyers are jumping into the stock on their
recent earnings. Yeah. Do you think that this
is showing signs of pandemic recovery here in the us
looking at Uber's earnings report, they did talk about
how the surge pricing was down, how the rides
to and from airports were bouncing back from this time
last year, which were basically zero in 2020.
Um what do you think that these earnings reports say
about recovery as a whole and where ridesharing will come
into play moving forward in the next few months?
I have a method, I call a walk down
main street. It's a simple way of looking at
stocks as you see them through a consumer's eyes,
You just mentioned live nation, I think you have
to mention the two hand in hand when I go
to a concert, when we go to concerts,
you know, one of the biggest things is getting
a ride afterwards, right? That became a thing
of the past now, you've got events coming back
online, you've got dining coming back online. So
as it speaks for the pandemic, starting to go
into the rear view mere. Hopefully it factors heavily
into where Uber and Lyft are going to go again
. They got into the business of delivering food and
these things that help them piecemeal together, you know
, some, some revenue for them and in some
places that actually pulled back and worked against them because
you had a lot of municipalities like here in Cincinnati
where they actually limited what they could charge. So
it really hamstrung them now, they're returning back to
the origin of the companies as they were founded as
they were, were surging before the pandemic and I
think that speaks volumes for the opportunity right now,
both are coming out stronger in the case of lift
, you've got two quarters now of positive Ebitda growth
, you've actually got the first from Uber, I
think lift in terms of the way that they've been
able to work with their drivers and their surge pricing
and everything, it's doing a little better job and
that's why the company is really hands down beating Uber
right now, that is my out of the two
, that is the one that I'm sticking with right
now is left, okay, gotcha. And I
do also want to bring up Uber's delivery business.
Uber eats it outperformed the ride hailing segment of the
business in this recent quarter. What do you think
is the reason behind that performance because I think about
this past quarter, so many people heading back out
into the world, there was such a huge demand
for dining in person, it's pretty incredible to see
those numbers, especially for the ride hailing business right
? Think of it as one of those change,
it's going to be permanent, I believe after the
pandemic, in other words, we're kind of these
creatures of convenience in some cases and before the pandemic
, it was more the experience and going out and
dining and for some time I think over the near
future it's going to be a return to that people
wanting to go out and spending that money and that
experience on the dining. But at the heart of
this, when you look at Uber's numbers and the
increase, the consistent increase that we're seeing in the
the delivery service, it tells me that we've kind
of had this paradigm shift similar to what we're seeing
with etc. And Chewy and a few other companies
that are now bouncing back. They got that slow
down when the pandemic started to go away and now
all of a sudden they're booming because we're going back
to not pandemic behavior but we're going back to conveniences
that we picked up because of the pandemic. I
think that's going to be one of the aspects of
Uber where you going to continue to see strong growth
. Don't get me wrong, the restaurant industry is
going to continue to see a bounce. So are
some of the retail companies like Chico's the tailor to
going back to work. But when you look at
Uber, I think not only the pricing and what's
happening with the ride sharing but also the delivery service
is going to continue to benefit that bottom line chris
johnson Ceo of johnson research group, Thanks so much
for joining us here on chatter news, appreciate that 00:05:20.290 --> insight