Uber Technologies, Inc. (UBER) has announced that its on-demand and scheduled grocery delivery is now available to Uber and Uber Eats customers in over 400 cities and towns across the U.S. For this, the company said, it has partnered with Albertsons Companies, Inc.
Following the news, shares of the company declined 1.4% on Monday and closed at $45.90 in the extended trading session.
With this expansion and collaboration with Albertsons, Uber is looking to gain a strong foothold in this space with further plans to efficiently deliver groceries to its customers.
The Global Head of Grocery and New Verticals at Uber, Raj Beri, said, "Today nearly 3 million consumers order groceries and other essentials each month through Uber and we’re just getting started. By adding thousands of beloved grocers to our selection this year, we are fast-tracking our efforts to help Americans get everything they need from their favorite supermarket, delivered to their doorsteps." (See Uber stock chart on TipRanks)
On July 14, Morgan Stanley analyst Brian Nowak reiterated a Buy rating on the stock with a price target of $72. The analyst’s price target implies upside potential of 58% from current levels.
According to the analyst, Uber’s delivery fees and/or incremental subscription revenue streams are significant to its future growth prospects. Further, the company’s order batching opportunity can act as a tailwind.
Consensus among analysts is a Strong Buy based on 22 Buys and 4 Holds. The average Uber price target of $72.36 implies upside potential of 58.8% from current levels. Shares have gained 35.4% over the past year.
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