Is Uber Stock a Buy?
The investment worthiness of ride-hailing company Uber (NYSE: UBER) is smack dab in the middle of a war zone at the moment. On one side sit many customers who love the use of technology as a means of democratizing personal transportation and some employees who welcome the freedom to work on their own terms. On the other side, you'll find the crowd that says a little regulation isn't a bad thing and some workers who think they are being taken advantage of. The entrenched opinions of almost everyone involved are deep and unmoving.
To be fair, both sides offer valid arguments. Mobile technologies have helped mainstream the so-called "gig economy," which has generally proven more empowering to individuals than problematic. And there's no denying the swell of Uber drivers -- along with drivers for chief rival Lyft (NASDAQ: LYFT) -- are causing greater street congestion, which in turn has prompted some cities to take drastic action in an effort to reduce the number of Lyft and Uber cars on the road at any given time.
Unfortunately, the situation points out the deep flaw in Uber's business model that cannot be easily addressed or circumvented. The flaw may eventually be shored up by fully autonomous driving vehicles (that are still years away from being ready for commercial use). The question is whether time between now and then is too rough for current and/or potential investors in Uber to simply ride out.
Source Fool.com
