Deliveries from Uber Technologies’s (UBER) food delivery service Uber Eats will be available in Germany. There is a serious competitor already here that the Uber stock Technologies will already be facing.
Uber Eats has appreciably increased its market share in Europe. Germany is Uber Eat’s tenth European shipping country. Berlin will initially be the hub, but the service will be extended in the next few weeks. Just Eat Takeaway has dominated food delivery in Germany for many years, and Uber is trying to counter that dominance in the German market. The Dutch Takeaway.com service and its UK counterpart, Eat, came together in early 2020 to create the Takeaway.com service. Grubhub, a US-based food delivery service, was acquired by the Uber Technologies in June 2020.
Uber reports that Germany is one of the fastest-growing food delivery markets in the world. Just Eat Takeaway’s high commission fees have caused a considerable thirst for bargain shipping. These issues are encouraging restaurateurs to seek alternatives to the current system. Uber Eats likely wants to become a similar supplier.
There’s no denying that Uber Eats has become one of the fastest-growing food delivery apps in Europe. Based on recent company news, the Uber Technologies has increased its stake in the UK and Spain. Uber Eats’ business gained significant traction during the periods when the pandemic was particularly active, as movement across the country was restricted.
This means that part of the Uber Eats business grew 221% YoY in the fourth quarter, while the passenger transportation business decreased 52% YoY. Uber Technologies’ revenue mix may slightly alter due to the thawing economy, but food delivery shouldn’t change too much. To improve profitability, the Uber Technologies notes that entering the German market is an important step.
On Friday, Uber Technologies Inc.’s shares rose 2.93% to close at 57.93. Shares were traded at an average volume of 8.76 million, which is lower than the average volume over the last three months of 19.44 million. Stocks were trading in the $56.39 to $57.95 range during the session. The UBER stock had a price-to-book ratio of -3.88. The stock is now down -4.01% over the last five trading sessions and moved 10.20% over the past one month, but is still up 13.59% on a year-to-date basis. Its 50-day moving average of $56.73 is above its 200-day moving average of $45.77. Furthermore, RSI today is 52.29 for the stock.