Uber (UBER) Announces Expansion of Its Car-Sharing Service
Uber Technologies UBER announced expansion plans of to its car-sharing service at Go-Get event, which was held in London on Jun 8. The ride-hailing company intends to launch the above service in the cities of Boston and Toronto.
The service allows people to borrow vehicles from private car owners for an agreed number of hours or days. Uber’s car-sharing service is currently available in Australia. The service was launched in 2022, post-acquisition of the peer-to-peer car-sharing network Car Next Door.
Car Next Door was founded in Australia in 2013. The objective was to do away with the “one person, one car” mentality apart from reducing the negative effects like air pollution. The car-sharing service, apart from generating revenues for car owners, makes it easy for any car to be turned into a shared car. Following its takeover, Car Next Door came to be known as Uber Carshare.
Ever since its inception in 2013, more than 1.1 million trips have been booked with Car Next Door. Following its takeover by Uber, the platform has grown even further and changed the mindset of multiple Aussies regarding the functioning of car rentals.
Given the success of the model, the decision to make it available in North America is a prudent move by Uber’s management. On being launched in the two cities, the car-sharing service is likely to augment Uber’s revenue stream significantly.
Zacks Rank & Key Picks
UBER currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry are Shopify SHOP and Akamai Technologies AKAM. Each stock is currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shopify is benefiting from growth in e-commerce spending. The Zacks Consensus Estimate for SHOP’s current-year earnings per share has been revised 50% upward over the past 60 days.
Headquartered in Cambridge, MA, Akamai is a global provider of content delivery network and cloud infrastructure services. AKAM’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio and business applications.
Akamai’s solutions allow customers to operate their web transactions anywhere, anytime, with cost-effective outsourced infrastructure and carry out predictable, scalable and secure e-business at low cost. The Zacks Consensus Estimate for AKAM’s current-year earnings per share has been revised 5.5% upward over the past 60 days.
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