Uber Profit Path Seen Slowed by Riders Taking Cheaper Rides
- Lyft, Bolt catering to price-concious taxi-hailers, HSBC says
- Uber recovered from post-IPO drop, still trails broader tech
Photographer: Justin Sullivan/Getty Images
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Uber Technologies Inc.’s path to profit is likely to be slowed by growing competition as a significant number of customers are willing to wait around for a cheaper ride, according to analysts at HSBC.
The company, which went public in May, will need to fend off “tough and persistent” rivals that cater to price-conscious consumers, Masha Kahn and Henning Cosman wrote as they initiated coverage of the stock with a hold rating. Lyft Inc. often prices 20-25% below Uber in New York and Daimler AG-backed Bolt is now doing the same in London, they said.