Uber (NASDAQ:UBER) as a haulage concern isn’t out of line. They already ferry people around and deliver goods to end consumers. But Uber also had a freight hauling arm that did what it did for consumers, but for businesses, on a larger scale. That may not last much longer, though, as Uber may be planning to exit that field, according to a new report from Bloomberg.
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Basically, the reports note that Uber would instead rather focus on what it’s better known for: the ride-sharing and food delivery portions of its business. The freight unit has not fared well in the last few months, and Uber figures it can lay off that portion of its workforce and move back into its core businesses. Currently, the freight business accounts for about 18% of Uber’s total revenue.
However, a full sale may not be Uber’s plan here. Reports suggest that Uber might instead pursue an initial public offering (IPO) instead. Uber is in talks with its panoply of advisers in a bid to figure out just which route to pursue. Should Uber go with the IPO—considered the more likely plan—it won’t actually take place until as late as next year. It may not even go off at all if the market conditions aren’t conducive.
Whatever Uber’s plan turns out to be, it enjoys strong analyst support. Currently, analyst consensus calls Uber a Strong Buy, with only one Hold against 25 Buy recommendations. Uber stock also enjoys 39.96% upside potential thanks to its average price target of $47.60 per share.
