However, you can’t invest in them on the ASX.
This is unfortunate as they’ve handled the Covid-19 pandemic well, boosting their growth.
If you want to buy their shares, don’t lose hope. You can do this through online brokers.
There are many options available, and we talked about 3 of the best. We also ran through the reasons why investing in them is a good move.
Where Can You Buy Uber Shares?
As mentioned, you can’t buy their stocks on the ASX. These brokers will have your back.
If you’re from Australia or New Zealand, you’ll be able to use the trading platform without any problem. Unfortunately, it is not available anywhere else.
You need to find a broker that is heavily regulated so that money going in and out is safe. HFTrading is regulated by the Australian Securities and Investments Commission and the New Zealand Financial Markets Authority.
To make use of their services, you need to make a minimum deposit of $250. The good thing about this is that you don’t have to pay any commissions. You can make payments through wire transfer, credit and debit card, Neteller, and Skrill.
The company hasn’t been around for long and entered the game in 2019. Many of their competitors have been around since before 2010.
It’s appreciated that they offer a mobile app. It’s fast and responsive. There are also as many features as its web counterpart. When using HFtrader on the computer, you’ll be utilizing MetaTrader 4.
You won’t just be trading Uber shares. They offer other asset types too – 750 of them. They include:
- Global shares
You don’t need to be an expert trader as the broker offers a thorough education center. If you’re ever in need of help, a good support team is also available. They’re very friendly and informative and are available 24/7.
You could also make use of their analytical tools. You’ll be given forecasts and analyses on how the market is doing.
Pepperstone is not new to the game. They’ve been around since 2010 and you’ll be glad to know that they’re based in Australia. They also accept users from most parts of the world. This includes the US, Canada, Syria, Iran, and Yemen.
Like any good broker, they’re heavily regulated. The following bodies have authorized them:
- Australian Securities and Investments Commission
- Dubai Financial Services Authority
- Financial Conduct Authority
There is a very detailed education section on their site and they even offer webinars. Of course, there are tools to improve trading strategies, as well. You will also get insights and alerts into how the market is doing.
There’s a fast and responsive mobile app which comes with as many features as its web counterpart. It makes use of MetaTrader 4.
To utilise their services, a minimum deposit will have to be made. You can make the payment through credit and debit card, Union Pay, Skrill, Neteller, Poli, and Fasapay. The minimum deposit would have to be $200.
You’ll also be charged commissions. However, this depends on the payment method you’re using. The most you’ll have to pay would be around $3.5.
Like HFtrading, you can trade many assets. The following are available:
- Global Shares
Although you can trade countless assets, Pepperstone started off trading only Forex, and they’re best known for it.
There is also thorough customer support offered 24/5. They’re informative and friendly – what more could you want?
Plus500 has been around longer than any other broker on this list and they entered the game in 2008. Their headquarters are in Israel and they have subsidiaries all over the world. This includes Singapore and the United Kingdom.
You’ll have to make a minimum deposit of $100before you use their services. You can make the payment through wire transfer, credit and debit card, Skrill, and PayPal. Commissions won’t be charged either.
The broker allows users from most parts of the world to utilise their services. Unfortunately, if you’re from the US, you won’t be able to.
They’re thoroughly regulated. Some of the bodies that authorize them are the:
- Federal Conduct Authority
- Australian Securities and Investments Commission
Plus500 has an exceptional customer support team and has won several awards. They are available 24/7 as well.
You won’t only be able to trade Uber shares. They offer:
An education center is present. That being said, it’s not the most detailed or helpful. They do offer some good trading tools, though – there are over 2000.
There is a mobile app, as well, which is as snappy as the PC version. Like most traders, Plus500 makes use of MetaTrader 4.
Uber Australia – Overview
Uber is arguably the largest name in ride-hailing. They’ve established a presence in countless countries, having a 71% market share alone in the United States. The company was founded in 2009, by Garret Camp and Travis Kalanick. The founders weren’t happy with the price of direct transportation at the time – Camp claimed that having to pay $800 for a driver led him to create the app.
The company beta-launched in May 2010. Their services and app became fully available in 2011. The company’s name was subsequently changed from UberCab to Uber.
Although you can currently hire a range of vehicles through their service, the company only offered black luxury cars at one point. By 2013, their popularity was rising. USA Today named them the tech company of the year.
Uber also entered the world of food delivery a few years ago, and UberEATS is now available across the globe. In the US alone, they have a 27% market share of food delivery services.
Investing in the company will be highly profitable, as they’re available in 900 metropolitan areas abroad. The number keeps expanding as they aim to take over the food delivery industry. Their services are highly reliable as they strive to keep customers safe by conducting thorough background checks on drivers.
The ride-hailer has been buying and selling stakes in other businesses as well. In January 2020, they acquired Careem for $3.1 billion and sold the Indian Uber Eats to Zomato, for a 9.99% stake in the company. They even acquired one of their rivals, Postmates, for $2.65 billion in the fourth quarter of this year.
As their goal is to lead the market, they’ve customized their services per location. In Croatia, Istanbul, and Miami, they offer boat services. They even run a helicopter service between Manhattan and J.F.K. International Airport.
Speaking of air transport, UberAir is set to launch in a few years. The ride-hailer says operations will begin in 2023.
|Uber Technologies. Inc||Company Information|
|Founding date||March 2009|
|Founders||Garrett Camp & Travis Kalanick|
|Current Owner(s)||Ronald Sugar, Dara Khorsrowshahi, Nelson Chai & Tony West|
|Headquarters||San Fransisco, California|
What Should You Consider When Buying Uber Shares?
In this section, we talked about what you should know about the company, as well as how to choose brokers before you work with them.
A Bad Debut
When Uber debuted on Wall Street, stocks were steady. After the IPO, they lost momentum fast. This was the fate of countless tech start-ups that went public in 2019.
Their shares dropped by 11% and they lost a billion in the first quarter of that year. A further $5.2 billion was lost in the second quarter.
In 2019, German courts put restrictions on Uber’s operations in the country. They stated that the ride-sharer took part in anti-competitive practices. The ruling banned them from providing third-party services.
The Sherman Anti-trust Act of 1890
If you’ve used Uber, you would know that the time of day you use their services affects the final fare. As their rates depend on how in-demand they are, their fares tend to be higher during emergencies. Some well-known examples of this were the 2017 London Bridge attack and Hurricane Sandy.
Many users have found this system unfair, and court cases have been filed against the company. Drivers aren’t aware of rates would be increased either. Lawsuits allege that this is a trade violation of the Sherman Anti-trust Act.
In 2014, documents alleging that Uber sabotaged their competitors were leaked to TechCrunch and Valleywag. Employees of the company would order rides from their competitor, Gett, and then cancel them.
This was done to sabotage the service’s reviews. It was also a move to make Gett riders switch to Uber.
The pandemic disrupted their growth. They reportedly lost $5.8 billion due to Covid-19. Subsequently, over 14% of their work-force had to be laid off.
Whatever broker you work with, make sure it’s adequately regulated. The more bodies authorizing it, the better. You don’t have to worry about cash flowing in and out. The options we discussed are very secure.
Depending on the platform you’re using, the commissions you’ll have to pay would differ. Look around before investing, as you could end up having to spend too much.
How will you buy Uber shares if the broker you’re interested in doesn’t accept your payment method?
Although you don’t need to use a broker that has a mobile app, this would make your life easier.
Why Should You Buy Uber Shares?
Investing in Uber is a good move. Let’s talk about why.
Uber is a highly successful operation. In 2019 alone, they boasted over 75 million active riders. They’re available in 80 countries, and as mentioned, they customize their services per location. They’re famous for making rickshaw-hailing available in India.
The number of trips Uber completed in the Q1 of 2020 was 1.658 million, while 2019’s Q1 consisted of 1.5550 million trips. This is impressive, as at the end of 2017, they only completed 1.03 million. They also accomplished this with a pandemic surging.
Growing Market Share
They are a leading name in the market. At their peak in early 2016, they held an 87% market share in the US. By August 2018, this dropped to 2018. It rose to 70% by the end of 2019 and hit 71% by May of this year.
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Is Now A Good Time to Buy Uber Shares?
Investing in the company is a now or never type of deal. Considering how they’re doing, this is advised. Let’s take a look at some statistics.
They make 70% of their total revenue from ride-hailing. Due to the global lockdowns, however, their services took a hit and their shares dropped in value. At one point, this went down by more than 50%. They are currently at $36 a share and have bounced back by 165%, compared to their lowest point in 2020’s Q1.
Their year-over-year revenue jumped by 14% in the first half of 2020 too at $3.5 billion, which beat the estimate of $3.4 billion. Since May 7, after Uber released their first-quarter earnings, their share price grew by 16%.
In an interview with Today, Dara Khosrowshahi, the CEO of Uber said that with countries reopening, Uber has begun to bounce back. He says that their worst days are behind them.
As discussed earlier, they cut thousands of jobs to deal with the pandemic. Their stocks rose by 30% since the wave of job cuts were announced.
The ride-hailing service commands the market, but they’ve seen their fair share of controversy. Most notably, their surge pricing. This leads to their rides being more expensive during times of crisis, like natural disasters. The company has also been exposed for obstructing their competitors.
When it comes to investing in them, you can’t do so on the ASX and you’ll have to work with brokers. We looked at three of the best options you can consider.
Now is a good time to buy shares in the company. Considering how Uber is doing at present, we recommend it. They’ve also handled the Covid-19 pandemic well. Their revenue for the first half of 2020 even exceeded their expectations.