Problem is it won't go back to pre-covid cashflows.
Just visit any cab rank/Uber pickup spot like at Howard Smith wharfs in Brisbane (or your local) and you will see everything you need to.
It's likened to those who hit the streets to visit suburbs in the US pre-GFC, where strippers owned 8+ properties, all of which were untennanted and in arrears to see that there was an oncoming collapse.
i get there is hope, but times have changed and Covid hasn't just paused business for them, it has moved more people to online systems (of which CABS app has been paying for reviews to enable them to promote how great it is), and more comfortable using app booking systems. The value proposition between Uber and Cabs is different and Uber is just taking over and I argue has taken over.
Again, we have reopened in may areas and Cabs just sit at the rank while Uber after Uber picks up.
Drivers are leaving as their businesses are dead.
i don't see the upside. Just structural decline.
You are saying they have revalued property. That is all well and good, but they are not a REIT and it is only cashflow at a sustainable margin that will dig them out of this hole.
Good luck A2B competing in a market where ridesharing companies are running at a loss. Where do you get your margin when that is the macro scenario you have to compete in.
A2B Price at posting:
$1.32 Sentiment: Sell Disclosure: Held
