US Rideshare & Delivery: Competition and consolidation

We don't often write quarterly recaps, but a LOT happened in the US Rideshare and Delivery sector over the past few weeks. Tactically, the group has gotten trickier, partly self-inflicted. UBER and LYFT were already wrestling with AV-driven multiple compression, and that debate continues as Tesla expands in Texas. Rideshare fundamentals were mixed, but investor expectations are also low; UBER needs to, and likely can, modestly re-accelerate in Q4. Delivery has been the relative safe haven, but now has M&A and new competitive headlines. Longer term, there's opportunity, and CART is the one clear beneficiary of all the action. Consolidation makes sense but has been a flurry of deals: UBER's acquisition of DHER and DASH's acquisition of CART are both likely to pay off longer term, yet will be subject to extensive regulatory review. On competition, UBER's Delivery push and the AMZN partnership leave investors wondering whether the Delivery equilibrium will change; we are not expecting any