Proactive Investors - Uber Technologies Inc (NYSE:UBER, ETR:UT8)’s shuttle bus service, ride share offerings and expanded grocery delivery partnership with Costco (NASDAQ:COST) are set to fuel booking growth, analysts say.
Bank of America (NYSE:BAC) maintained a ‘buy’ rating on Uber following its Go-Get event, in which the travel products were showcased and the partnership was unveiled.
“[The] Costco partnership is a nice win for Uber, as Uber is actively trying to build out its grocery selection,” the bank noted.
This will see Costco products sold through Uber Eats in areas of the US, Japan, Canada and Mexico, with members being offered cheaper deals.
Also highlighting Uber buses and shared rides, analysts said: “Go-Get 2024 introduced several new features and products that we believe could drive incremental bookings growth.”
Citing company data, the bank noted 20% of new customers over the first quarter had come through such channels.
“We believe new verticals growth will be an important driver of Uber's three-year bookings growth target,” analysts added.
A share price target of US$87 was also set, signalling a 30% jump on Wednesday’s close.