Uber's food delivery business is the company's biggest weapon against rivals like Lyft: Wedbush

Uber published its first earnings since its IPO, beating Wall Street expectations.

In a note to clients on Friday, Wedbush made a bull case for the company, saying its secret sauce its food delivery arm, Uber Eats.

Wedbush said Uber Eats sets Uber apart from other ride-hailing rivals and is key to transforming it from a taxi firm into a broad consumer play.

Wedbush also remarked on Uber's plans to ramp up the promotion of Uber by using one of the biggest weapons in its armory: its main ride-hailing app.

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Uber set pulses raising on its calamitous first day of trading on the New York Stock Exchange earlier this month, but there were few surprises in its debut quarterly earnings.

The earnings (revenue of $2.76 billion; a loss of $1 billion) were slightly above Wall Street expectations and in line with the company's prior guidance. It painted the picture of a grownup company, with losses under control and revenues rising nicely. Shares are up 1.4% in pre-market trading at the time of writing.

But it was one area of Uber's business in particular that prompted Wedbush into making a bull case for the company — and that was its food delivery arm, Uber Eats.

Uber Eats revenue rose 89% to $536 million in the first three months of 2019 compared with the same period last year, cementing its position as the largest online meal delivery player outside of China. Gross bookings also rocketed 108% to $3.1 billion — the metric CEO Dara Khosrowshahi picked out on an earnings call Thursday.

Read more: Uber's first quarterly earnings report as a public company tops Wall Street expectations

Wedbush said Uber Eats sets Uber apart from other ride-hailing rivals, such as Lyft.

“We continue to see this as Uber's biggest differentiator as it is the only one among its competitors that is a leader in both massive opportunities [ride-hailing and food delivery] on a global basis,” analysts wrote in a note circulated to clients. It added that this is key to Uber's “ability to morph its ridesharing platform into a broader consumer engine.”

Uber and Uber Eats cross-promotion

Wedbush was also remarked on Uber's plans to ramp up the promotion of Uber by using one of the biggest weapons in its armory: its main ride-hailing app. On the earnings call, Khosrowshahi said Uber Eats deals will be marketed more in the main app.

“Suffice it to say that we are starting to experiment in ways in which we can up-sell our ride customers to Eats deal in a way that — to be plainspoken — isn't annoying; in a way that is beneficial to our rider,” he explained. It's early days, but Uber is encouraged by the results so far, the CEO added.

“What we found is that with Rides and Eats, we have got very talented tech and product team, and we are seeing early signal where essentially you can have very little if any cannibalization of a Ride and throw a significant amount of potential demand onto the Eats side,” he said.

It works the other way too. Half of Uber Eats customers do no use ride-hailing, Khosrowshahi said, but are discovering it through the delivery app.

Wedbush concluded: “While it's been rocky for Uber (and its investors) since the IPO, we view last night's results and positive commentary as a much needed feather in the cap for the bulls and should help Uber start to slowly get out of the investor penalty box.”

优步公布了自首次公开募股以来的第一笔收益，超过了华尔街的预期。在周五给客户的一份报告中，Wedbush为该公司做了一个公牛案，称它的秘密在于食品交付部门，Uber Eats。 Wedbush表示Uber Eats让优步与其他乘车竞争对手区别开来，是将其从出租车公司转变为广泛的消费者游戏的关键.Wingbush还评论了优步的计划通过使用其军械库中最大的武器之一来推动优步的推广：它的主要驾驶应用程序。访问Business Insider的主页以获取更多故事。优步在其灾难性的第一天设置脉冲本月早些时候在纽约证券交易所进行交易，但其首次公布的季度收益几乎没有出人意料。收入（收入27.6亿美元;亏损10亿美元）略高于华尔街的预期并符合预期与公司的事先指导。它描绘了一家成年公司的情况，失控得到控制，收入增长良好。在撰写本文时，股票在盘前交易中上涨1.4％。但尤其是优步的业务领域促使Wedbush为该公司制造了一个牛市 - 这就是它的食品交付部门， Uber Eats。与过去一年同期相比，Uber Eats在2019年前三个月的收入增长了89％，达到5.36亿美元，巩固了其作为中国以外最大的在线餐饮供应商的地位。总预算也飙升108％至31亿美元 - 公司首席执行官Dara Khosrowshahi周四在财报电话会议上发布了这一消息。阅读更多：优步的第一季度财报显示，作为一家上市公司，华尔街的预期超出预期.Wedbush表示优步Eats让优步与其他乘坐竞争对手（例如Lyft）区分开来。“我们继续认为这是Uber最大的差异化因素，因为它是竞争对手中唯一一个在这两大机遇中都处于领先地位的竞争对手。分析师在一份发给客户的说明中写道，”在全球范围内提供食物和食物“。它补充说这是优步”将其共享平台转变为更广泛的消费者引擎的能力的关键。“优步和优步吃交叉促销.Wingbush也谈到优步计划通过提升优步推广优步使用其军械库中最大的武器之一：它的主要骑行应用程序。在财报电话会议上，Khosrowshahi表示Uber Eats的交易将在主应用程序中进行更多营销。”我只想说我们开始试验我们可以将我们的乘客客户卖给Eats交易的方式。一种方式 - 平庸 - 并不令人讨厌;这种方式对我们的骑手有益，“他解释道。首席执行官补充说，这是迄今为止的优势，但是Uber对结果感到鼓舞。”我们发现，通过Rides and Eats，我们拥有非常有才华的技术和产品团队，我们看到早期的信号在哪里基本上你可以很少有一个骑行的自相残杀，并在Eats方面投入大量的潜在需求，“他说。它的另一种方式也是如此。 Khosrowshahi表示，Uber Eats的一半客户不会使用乘车，而是通过交付应用程序发现它。 Wedbush得出结论：”虽然自首次公开募股以来优步（以及其投资者）一直处于困境之中，但我们认为昨晚的结果和积极的评论是多头上限急需的，并且应该帮助优步开始慢慢获得退出投资者罚款框。