Editor’s Note: Is uberPOOL a major technological event that will alter public transportation forever? And did Wabtec (WAB) just pay a premium to acquire Faiveley ahead of this revolutionary new change? Below is a brief excerpt from an institutional research note written by Hedgeye Industrials analyst Jay Van Sciver discussing uberPOOL and its implications for his WAB short call.
UberPOOL Could Be HUGE: Pre-tax dollars can now be used for UberPOOL in New York City through TransitChek, with broader expansion coming to many key cities. Even if this and related services sap just a few percentage points of transit demand, it can have a significant impact on total transit capital spending. Importantly, bureaucrats hesitant to spend hundreds of millions of taxpayer dollars on public transit equipment may wait to see if ridesharing services could fill the gap instead. If it works here, it can reasonably be expected to go global. Is Wabtec into Faiveley at a premium price ahead of a major shift in government capital equipment expenditure?
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