ACCT 701 Final Project.edited (1).docx - Financial Analysis and Firm Strategy Final Project Uber Technologies Inc(UBER Lyft Inc(LYFT Huang \u2013 ACCT 701

ACCT 701 Final Project.edited (1).docx - Financial Analysis...

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Financial Analysis and Firm Strategy - Final ProjectUber Technologies, Inc. (UBER)&Lyft, Inc. (LYFT)Huang – ACCT 701 SPR 2020
Uber Technologies, Inc.1455 Market St 4th FlSan Francisco, CA 94103Uber Technologies, Inc., commonly known as Uber, is an American multinational ride-hailing company offering services that include peer-to-peer ridesharing, ride service hailing, fooddelivery (Uber Eats), and a micro-mobility system with electric bikes and scooters. The companyis based in San Francisco and has operations in over 785 metropolitan areas worldwide. Its platforms can be accessed via their websites and mobile apps.As of 2019, Uber is estimated to have over 110 million worldwide users. In the United States, a 67% market share for ridesharing in early 2019 and a 24% market share for food delivery in 2018.Industry: TransportationBusiness Entity Type:PublicFounded:March 2009Founders: Garrett Camp & Travis KalanickHeadquarters:San Francisco, CaliforniaAreas Served:63 countries, 785 metropolitan areasNumber of employees:22,263 worldwide, including 11,488 outside the United States (2018)Source of the Financial Data:
Lyft, Inc.185 Berry StSan Francisco, CA 94107-5705Lyft, Inc. is a ridesharing company based in San Francisco, California and operating in 644 cities in the United States and 12 cities in Canada. It develops, markets, and operates the Lyft mobile app, offering car rides, scooters, a bicycle-sharing system, and food delivery services.Lyft is the second-largest ridesharing company in the United States with a 28% market share after Uber, according to Second Measure.Industry: TransportationBusiness Entity Type:PublicFounded:June 9, 2012Founders: Logan Green & John ZimmerHeadquarters:San Francisco, CaliforniaAreas Served:the United States and CanadaNumber of employees:5,380 (2019)Source of the Financial Data: I chose Uber and Lyft because these two companies have utilized the technological advances to perfect and match drivers and passengers at such short notice. These applications took advantage of modern-day carpooling and operate as a taxi service but, with convenience and pricing advantage over taxi companies. Ridesharing is making an impact on urban mobility by forcing cities to embrace multimodal approaches to transportation, disruptive innovations willcontinue to make shared rides cheaper, and ridesharing will expand to non-traditional markets. No matter the future of ridesharing, connectivity technologies will continue to thrive making owning a car less and less necessary.
Horizontal Analysis – Income StatementUber Technologies, Inc.20192018Increase or DecreaseAmountAmountAmountPercentageTotal Revenue14,147,00011,270,0002,877,00025.5%Cost of Revenue7,208,0005,623,0001,585,00028.2%Gross Profit6,939,0005,647,0001,292,00022.9%Operating ExpensesResearch Development4,836,0001,505,0003,331,000221.3%Selling General and Administrative7,925,0005,233,0002,692,00031%Total Operating Expenses15,535,0008,680,0006,855,00078.9%Operating Income or Loss-8,596,000-3,033,000(11,629,000)383.4%Interest Expense559,000648,000(89,000)(13.7%)Total Other Income/Expenses Net488,0004,889,000(4,401,000)(90.0%)Income Before Tax-8,433,0001,312,000(9,745,000)(742.8%)Income Tax Expense

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