Uber Technologies on Wednesday rolled out a series of new products, including a "Price Lock" feature to avoid surge pricing for some rides. The features got positive feedback on Wall Street, but Uber stock slipped in regular trading.
Uber announced the new offerings at its annual GO-GET conference. A new $2.99-per-month Price Lock Pass allows riders to lock in prices on specific routes to avoid surge charge. Lyft launched a similar feature last year. Uber riders will also have the option to buy prepaid passes for some routes. The company also announced a buslike "Route Share" service that offers cheaper fares for shared rides along busy corridors.
Uber stock shed 1.8% to 90.09 on the stock market today. Share are easing back from a record high of 92.17 that Uber reached on Tuesday.
Piper Sandler analyst Thomas Champion told clients Wednesday that he "expected a more positive reaction" to Uber's business announcement. But "the pricing of roughly $1 billion in senior notes may have been an offset," he added.
Uber late Tuesday announced the pricing of $1 billion in senior notes due in 2028, which are exchangeable for stock of Aurora Innovation. Aurora is the autonomous-vehicle developer that acquired Uber's self-driving-car research division in 2020. Aurora stock fell Wednesday on the news.
Uber said in a news release it would use the proceeds for "general corporate purposes."
Piper Sandler reiterated a positive overweight call for Uber stock with its client note Wednesday.
Champion said he sees "strong potential for margin improvement with rapid growth of ads, membership, and other services." But "today's stock reaction may have been driven more by the $1 billion 0% 2028 exchange notes offering investors exposure to Aurora Innovation," he wrote.
Uber Stock Returns To Record Highs
Uber described the features as "new ways to help you save on the things you do every day," in a news release Wednesday.
Evercore ISI analyst Mark Mahaney said in a client note that Lyft's Price Lock feature has been well-received. He holds an outperform call on Uber stock.
"Overall, the key theme at this year's GO-GET event was 'Uncertainty' — consumer concerns about a potential recession, job stability, personal finance, and the benefits or risk of AI and new technology," Mahaney wrote.
Uber stock broke out above a consolidation-pattern buy point of 87 in Monday trading, according to IBD MarketSurge.
This week is the first time Uber has set a new high since October. Shares slumped late last year on concerns that robotaxis would challenge its market share. But new AV-focused partnerships that Uber has rolled out in recent months are easing those fears.
