Uber Technologies' (UBER) acquisition offer for Delivery Hero expands its cross-platform opportunity, Wedbush said in a note Thursday, describing the strategic implication of the deal as net positive.
The brokerage said the deal expands Uber's cross-platform markets from 34 to 58, adding more than 50 million eligible cross-platform consumers.
"Cross-platform users generate ~3x the gross bookings and profits of single-product users," while acquiring those users is "~50% cheaper than paid acquisition channels," Wedbush said.
Wedbush said the acquisition supports Uber's push beyond food delivery into the broader $10 trillion global grocery and retail market, with the combined company operating in more than 100 markets.
Wedbush has an outperform rating on the stock with a $91 price target.
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