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Which Has The Stronger Competitive Moat: Airbnb Or Uber?

May 02, 2022 2:22 AM ETAirbnb, Inc. (ABNB), UBERBKNG, DASH, EXPE, LYFT, TRIP28 Comments
WideAlpha profile picture


  • Uber and Airbnb are two special companies: they were the first to massively disrupt the taxi and hotel businesses respectively, creating two-sided marketplaces that enjoy strong competitive advantages.
  • Both companies are still growing quickly, but they are both very expensive, both in absolute terms and when compared to competitors.
  • We believe Airbnb has a stronger competitive moat, which is reflected in its higher profit margins that rival those of software SaaS companies.

The winner

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Uber (NYSE:UBER) and Airbnb (NASDAQ:ABNB) are two special companies in that they were the first to massively disrupt the taxi and hotel businesses respectively, creating two-sided marketplaces that enjoy strong competitive advantages. We were

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WideAlpha profile picture
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Comments (28)

TimedTrader profile picture
Thanks for the article.. finally someone is able to talk some sense on this platform!
WideAlpha profile picture
@TimedTrader Thank you for your kind comment
Both of them are SaaS companies to be honest...
@WideAlpha i look at Uber as a travel stock, since people are traveling it should show up in the earnings, other travel stock have fared much better, What’s your opinion on that? Also at what point would you buy Uber?
WideAlpha profile picture
@MY Capital Thanks for reading and for the comment. You make a good point, and certainly a full travel recovery should be a big tailwind for Uber. We would consider buying Uber at ~30% lower than where it is currently trading, so low 20's.
Gimmealltheloot profile picture
@MY Capital I like low 20s and below as well, anywhere near the COVID market crash lows seems like a buy, from a technical perspective.
@Gimmealltheloot I’m going to be honest with you, i started buying at 31.00, I believe in this company, i was thinking about selling, but i did not pull the trigger, would you recommend sticking it out?
GM's cruise EV taxis - autonomous and no steering wheels - will replace LYFT and Uber in the cities. They are launching in San Francisco this year!
Major disruption right under your noses!
And massive profits for the very profitable and low PE General Motors!
buckiowa profile picture
Neither one
Gimmealltheloot profile picture
Neither company seems able to become profitable so a moat doesn’t matter to be honest, at-least not until they can actually turn a profit. In my opinion, MOATS are suppose to help generate and protect PROFITS. If the ‘MOAT’ can’t do that for a company then it really isn’t an advantage, just speculation.
@Gimmealltheloot Airbnb not profitable? Pls explain.
Gimmealltheloot profile picture
@Martin_485 explain what? Just read the financial statements from the company, last I checked they were still operating at a net loss.. Yes I get it, growth companies operate at a loss while expanding and etc blah blah blah.. Airbnb has been operating for YEARS, 2008. It’s fundamentally absurd, in MY opinion, to say that a company has a MOAT if they aren’t generating PROFITS.. In MY opinion, based off facts, it’s just speculation right now. The goal is to make money, I don’t see how you can have an advantage if you’re losing money. Yes, in the future it may very well pay off handsomely. I actually like Airbnb, as of right now TODAY, I’m under the opinion that they have a lot of room to improve their business model. I have small positions in UBER and AIRBNB. If something good happens with the companies, fundamentally/operating profits/severe drop in stock price etc, I may be ready to think of them as great investments with MOATS
@Gimmealltheloot Yes, exactly, that´s what I did. Pls read the financial statements and look where they were spending money in the past. This is money they don´t have to spend in the future. Airbnb can easily make 3 billion net income out of 10 billion revenue. They also showed it in the summer quarter last year. So they are very well on the path of generating profit in the future with fantastic margins.
The fact that Uber is not profitable despite continuing to raise rates significantly last few years is a red flag .
@kmanm Amazon wasn't profitable for years as well
Buddy Wise profile picture
Neither of the two companies have any competitive moat…
@Buddy Wise id say that the fact that their company names have literally become an adjective is a bit of a moat.
@Buddy Wise They have access to cheap money and are US companies. That is their "moat". Imagine the valuation of Uber if it was a FTSE company.
@Sixers03 Uber is an adjective for a Lyft..... Uber has other longer term investments that weren't mentioned. in the article. Didi and Uber freight for example...?
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