Uber Scaled Solutions to compete with TaskUs, says Morgan Stanley

Morgan Stanley notes that Uber (UBER) announced it has launched its own data labeling and testing service named Scaled Solutions and is recruiting independent contractors in order to help enterprise customers label and train their respective Gen AI solutions as part of the launch. Should Uber Scaled Solutions successfully ramp its operations, the firm believes the company will increasingly compete with BPO providers such as Telus International (TIXT) and TaskUs (TASK) in the data annotation services market, adding that it thinks Uber’s foray into the data annotation market will increase competition for talent and believes any potential market share shifts will be contingent on contractor wages. The firm maintains an Equal Weight rating and $18 price target on TaskUs shares.