Uber Technologies, Inc. (NYSE: UBER) has inked a partnership deal with Smart & Final Stores to expand its on-demand and scheduled grocery delivery service to customers across the West Coast.
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Shares of the mobility company fell 4% on January 25 to close at $34.82.
Benefits of the Deal
Based in California, Smart & Final Stores is a chain of smaller, faster grocery warehouse-style food and supply stores with 254 locations.
Through the deal, Smart & Final becomes the first grocery partner in the U.S. to offer alcohol at value prices delivered to customers’ doorsteps through Uber Eats.
Alcohol delivery will be available immediately in California. Further, the company intends to broaden the offering to Arizona and Nevada later this year.
Currently, 173 Smart & Final stores have partnered with Uber and Uber Eats across Arizona, California, and Nevada, with future plans to include all the 254 locations.
Management Weighs In
Oskar Hjertonsson, Head of Grocery at Uber, commented, “Grocery continues to be a rapid area of growth for us this year with millions of consumers ordering groceries and other essentials through Uber each month.”
Joe VanDette, Group VP of Marketing & Digital at Smart & Final further added, “Consumers are increasingly looking for easy and convenient ways to shop, and this new partnership with Uber allows Smart & Final to bring our more than 3,000 club store items, farm-fresh produce, organic products and even alcohol to new and existing shoppers via a convenient on-demand experience.”
Wall Street’s Take
Today, Needham analyst Bernie McTernan reiterated a Buy rating on Uber with a price target of $75 (115.4% upside potential).
Overall, the stock has a Strong Buy consensus rating based on 12 unanimous Buys. The average Uber Technologies price target of $68.94 implies a 97.99% upside from the current levels.
TipRanks’ Smart Score
Uber scores an 8 on 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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