Uber, CarTrawler Team Up For New UK Car Rental Service

Uber (UBER) has revealed that users in the UK will soon be able to rent cars via the Uber app, thanks to a new partnership with car rental company CarTrawler.

According to a report from The Verge, there will be a new “Uber Rent” option in the app, through which users will have access to available cars for their selected date and location. These cars can then be collected from “hundreds” of car hire company pickup locations, says the report.

The service, which has already been trialed in France and Australia, works slightly different to Uber’s bike and scooter rentals as users are advised to reserve the cars 24 hours in advance. The Verge states that users can cancel their car rental 48 hours before the collection and that Uber will offer rental discounts of up to 25%.

Jamie Heywood, Uber Regional General Manager for Northern and Eastern Europe, said: “Now that travel restrictions are easing and people are venturing out more, we want to help get the country moving safely again.

“Whether it’s public transport, bike and car rentals, car rides or even a boat, users can now make almost any journey on the app, pushing us further towards our goal of ending the need for private car ownership.”

Shares in UBER are up 12% year-to-date, and the stock scores a bullish Strong Buy Street consensus. That’s with an average analyst price target of $42, indicating 26% upside potential lies ahead.

Wells Fargo analyst Brian Fitzgerald recently reiterated his buy rating on the stock while bumping up the price target from $41 to $48- indicating significant upside potential of over 40%.

“While remaining vigilant on cost, liquidity, and profitability, management has subtly shifted the storyline to Uber’s ability and intentions to capture growth profitably, repositioning the market’s attention to factors more bullish for the stock” he commented.

In particular, the analyst believes that Uber’s “Delivery” segment (formerly “Uber Eats) is now a valuable hedge on growth, with strong customer acquisition and industry rationalization painting a bright picture for “Delivery” as an engine of shareholder value. (See UBER stock analysis on TipRanks).