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SoMa Equity: Uber Is Viewed As A Commodity Business

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Jacob Wolinsky
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Notes from SoMa Equity Partners' Gil Simon presentation from the 2020 SohnX San Francisco Conference.

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Q2 2020 hedge fund letters, conferences and more

Uber
freestocks-photos / Pixabay

Gil Simon of SoMa Equity Partners

  • Uber
  • Transportation industry
  • Current position, global leader in service
  • Most competitors are regional
  • Highly valued platform
  • Viewed as commodity business
  • Truly number 1 in every region
  • Rides and eats
  • Has ability to launch new services
  • Volatile history
  • Cultural and PR battles with Travis
  • Very distractive
  • Can now optimize business model
  • 3 overhangs
  • Covid, regulation, profitable
  • Each of 3 can be solved over next year
  • Covid, ride share down to zero
  • Had ability to cut costs
  • Uber eats has gone up
  • Optimize delivery business
  • Food delivery consolidation
  • Market share...

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Jacob Wolinsky is the ex-Founder of Valuewalk.com (founded 2011, sold 2023). He is founder of HedgeFundAlpha (formerly ValueWalk Premium), a hedge fund focused intelligence service for institutional investors. Prior to founding Valuewalk, Jacob worked as an equity analyst covering small caps, a micro-cap analyst, doing member development a large hedge fund community and freelance financial writing. Jacob lives with his wife and five kids in Passaic NJ. - Email: jacob(at)hedgefundalpha.com. For confidential inquires email me for my Signal id. Other methods of secure communication are also available. FD: I almost exclusively avoid the purchase of equities to avoid conflict of interest and any insider information. I only purchase broad-based ETFs and mutual funds. I will disclsoe if I have a stake in any company, but in general avoid