Morgan Stanley Analysts Unexpectedly Impressed By Uber

A team of analysts at Morgan Stanley visited the head offices in Detroit of General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F) and Fiat Chrysler Automobiles NV (NYSE: FCAU) on Monday. However, the real highlight of the trip was traveling around between meetings using Uber's service.

The analysts took three UberX journeys and highlighted the individual trips in a note to clients on Thursday.

The first driver, a U.S. Army Veteran and a mother of three, makes use of Uber's initiative called UberMilitary with the goal of bringing 50,000 members of the military community onto the Uber system. Uber offers the military veteran flexibility in schedule while providing an additional income.

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The second driver, a 30-something student, uses Uber in between classes to earn some income and help support his family. The Morgan Stanley analysts note that the trip at just $20 provided tremendous savings as a typical journey normally costs $30 to $35.

The third driver, a dean of students at a charter school, recently ran into a cash flow deficit following expensive renovations to his house. The dean told the analysts he collects $600 to $700 per week on a schedule that works around his regular work duties.

The analysts conclude by stating "we may never use a traditional car service or rent-a-car again unless absolutely necessary" and that "our journey through Southeast Michigan further opened our eyes to the birth of a shared economy in a region starving for growth and opportunity."

The analysts commentary is consistent with comments they heard from Ford executives who stated that alternative mobility/car-sharing/ride-sharing is the "single most disruptive trend" to the automotive business model.