This investor likes Uber right now

Propellus Wealth Partners portfolio manager and senior wealth advisor Mike Vinokur says Uber Technologies (Uber Technologies Stock Quote, Chart, News, Analysts, Financials NYSE:UBER) remains attractive because of its valuation, network effects and expanding recurring revenue base.

Speaking on BNN Bloomberg’s Market Call on Aug. 4, Vinokur said Uber is better viewed as a technology platform than a transportation company.

“What we like about Uber is that unlike their competitors, they’re not just doing the ride-hailing business; they’re doing the delivery business,” Vinokur said.

He said Uber’s platform connects riders, drivers, restaurants, merchants and customers while requiring relatively little investment in hard assets because drivers own the vehicles.

Vinokur said Uber’s large user base and global footprint support its network effects. He also pointed to Uber One, the company’s subscription program, which has about 50 million members and drives a large share of recurring business.

“If they can only expand that 50 million by a little bit, that expands the recurring revenue theme,” Vinokur said.

He said Uber’s planned acquisition of Delivery Hero would further expand its geographic reach and likely improve economies of scale.

Vinokur also credited CEO Dara Khosrowshahi for strong capital allocation and said Uber remains attractive from a margin-of-safety perspective.

The stock is down 17.57% over the past 12 months but up 83.05% over five years.