On The Road Again Mobility Observations And Predictions September 2020 / Confidential Jefferies LLC Member SIPC The information provided in this document, including valuation discussions, represents the views of Jefferies Investment Banking. There is no assurance that the views expressed herein will be consistent with the views expressed by Jefferies Research or its Analysts. Nothing in this document should be understood as a promise or offer of favorable research coverage. Jefferies LLC / September 2020 Pre-COVID Commuters Cared About Four Things 1) Experience 2) Price 3) Privacy 4) Speed Comfort Loyalty programs Social group v. Wait time Convenience Perks Solo commute Number of stops Location tracking & data collection Image sources: Fox Business, VRBO, and Google. Jefferies LLC / September 2020 1 Creating A Race To Become An Integrated Mobility Solution Provider Public Personal Long Distance Rental / Ride- Company Bus Train Ferry Carpool Scooter Bike AV Bus Train Car Air Share Sharing Didi Autonomous × × × Driving × × × × × × × × (1) Route Guidance Only × × × × × × × × × In-App Public Transit Feature(2) × × × × OLADrive OLASHARE OLABIKE OLAFLEET × × × OLARENTAL × In-App Public Transit Feature(3) Bus(3) (1) Google Maps Ride-Service Providers include: Bitaksi, BlaBlaCar, Cabify, Careem, Chauffeur Prive, Gett, Go-jek, Grab, JapanTaxi, Juno, Lyft, Meru Cabs, MyTaxi, Ola Cabs, Beat, 99, and Uber. (2) Launched in select cities, Santa Monica is the only explicitly disclosed city with the “Transit” feature. (3) Currently only available in Denver, London, San Francisco. Jefferies LLC / September 2020 2 Covid: Massive Decline In Transit Created By Quarantine and Fear Transportation Nearly Halted With Shelter In Place Case Study – Seattle Mobility Index % of the city moving compared to usual(1) 120% 100% 80% 60% 40% Trough of 5% 20% 0% Feb-20 Mar-20 Apr-20 May-20 Source: Citymapper, TomTom. (1) Typical usage period is defined as 4 weeks between Jan 6 and Feb 2, 2020.. Jefferies LLC / September 2020 3 Disadvantaging High-Volume Transit... Illustrative Human Interactions Per Day By Modality = 1 Human Interaction Personally Owned Shared Ride Share / Bus / Subway / Vehicle Scooter / Bike Taxi(1) Train • More difficult to sanitize • Solo rides • Solo rides • Crowded • Enclosed space • Assurance of • Few surfaces to • Contained space • No knowledge of cleanliness and sanitize Unavoidable communal previous passenger safety • Open environment surfaces history Note: Data provided is illustrative. (1) Assumes 12 trips per day, per the New York Taxi Workers Alliance. Jefferies LLC / September 2020 4 …Creating Substantial Friction In How We Commute Case Study – Where Will New York City Riders Go? Daily Weekday NYC Former Public Transit Riders 7.2M Public Transit Riders(1) 3M Current Non-Public Estimated Minimum Transit Commuters (40%) Rider Attrition Rate(2) 1.8M Decrease of 3M Daily Riders From Public Transit The Biggest Cities Will Be The Most Impacted Source: MTA NYC, U.S. Census Bureau, and news articles. (1) 2018 average weekday ridership. (2) McKinsey estimates. Jefferies LLC / September 2020 5 Mobility Networks: Diversifying, Expanding, and Increasing Efficiency Reopening State of the Markets Restricted Asia Europe North America Diversifying From Core Expanding Operations Focusing On Profitability ◼ Movement to diversify away from a single revenue ◼ Select networks are expanding while market heats up ◼ North American powerhouses are focusing on stream — This year Bolt has introduced grocery delivery increasing operational efficiency with an eye on — Didi launching a grocery delivery service in China services, eScooters, and eBikes throughout it’s profitability European markets — Gojek acquired Moka, a mobile point-of-sale — Lyft aims to remove ~$300M from annual startup, April — Cabify has expanded services to several more expense run-rate through 17% workforce Spanish cities, aiming to have national coverage — Grab is focusing on financial services as it reduction, furloughs, etc. recently released the GrabPay Card and within two years — Uber has unloaded unprofitable segments such acquisition of Bento Invest, a robo-advisory — Free Now launched its mobility services in as its India Eats and Jump assets startup France, integrating the services of former ◼ Aggregate capital raised: $1.4B since May acquisition, Kapten — Ola’s acquisition of Etergo, an e-scooter manufacturer, with plans to launch its own — Gett announced a partnership with eBay to scooters next year provide same-day delivery service in Israel ◼ Aggregate capital raised: $2.05B since April — Yandex is in discussions to purchase Uber’s share of Russian JV ◼ Aggregate capital raised: $210M since May Source: Wall Street research reports and industry reports. Jefferies LLC / September 2020 6 While Profitability Timing Has Been Pushed Out Further YTD Stock Price Index YTD Forward Revenue Multiple 60% 6.0x 40% 5.0x 4.8x 20% Nasdaq 4.0x 13.2% 12.0% 0% 3.0x 2.7x -20% 2.0x -40% (37.8%) 1.0x -60% 0.0x Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Jan-20 Feb-20Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Metrics ($M) Pre-Covid Current Pre-Covid Current 2021 Revenue $23,387 $17,959 $5,733 $3,777 2021 EBITDA Margin 0.3% (1.8%) (2.7%) (7.6%) Profitability Timeframe Q4 2020 Q3 2021 Q4 2021 Q1 2022 Price Target (Implied Upside) $45.0 $42.6 (+23.6%) $62.0 $40.7 (+47.95%) Buy / Sell / Hold Breakdown 68% / 32% / 0% 84% / 3% / 13% 69% / 28% / 3% 56% / 0% / 44% Source: Earnings transcripts, Wall Street research, and Capital IQ as of 9/25/20. (1) Represents peak in February 2020. Jefferies LLC / September 2020 7 Predicting The Future Image sources: Adobe. Jefferies LLC / September 2020 8 Predictions 1 Migration To “Safer” Modes Of Transportation Underway 2 The Biggest Cities Will Be The Most Impacted 3 Auto eCommerce Will Grow Exponentially 4 Accelerating Adoption Of Technology & New Services To Ensure Safety 5 Driving Cities To Alter Their Infrastructure… 6 …And Expand Partnerships With Mobility Providers Jefferies LLC / September 2020 9 China Has Reopened While the Rest of the World Catches Up China vs. U.S. Since Shutdown Global Change in Traffic Since Reopening 120 Congestion Index Since Shutdown Traffic Congestion Index(1) (YoY Change) T = Shutdown T = Reopening Reopening State of Markets Restricted 100 9% 80 -15% -15% 60 -42% Congestion Level Congestion -50% -56% 40 T+0 T+10 Today 20 April May 4 May 27 18 May 4 May June 18 8 0 T=0 T+1 T+2 T+3 T+4 T+5 T+6 T+7 T+8 T+9 T+11 T+12 T+13 T+14 T+15 T+16 T+17 T+18 T+19 T+20 T+21 T+22 T+23 T+10 Date Severe Restrictions Were Lifted Number of Weeks Since Shutdown Source: TomTom and Wall Street Research as of 8/30/2020. (1) The congestion index analyzes how long a trip would take compared to baseline uncongested conditions. Jefferies LLC / September 2020 10 1 A Change Is Underway In How We Commute Trough(1) Legend Current Current Transportation Recovery Shortest Time to Recovery Longest Intracity Travel Ridehailing Public Transit Domestic Air International Air 100% 100% (2%) (2%) (50%) (75%) (77%) (90%) (90%) (90%) Intracity Travel Ridehailing Public Transit Domestic Air International Air (38%) (44%) (54%) (70%) (68%) (74%) (94%) (90%) (95%) (90%) Source: Wall Street research, News articles, Second Measure, TSA, Bureau of Transportation Statistics, The Wall Street Journal, Time, Jefferies Equity Research and BBC (1) Trough for China defined as late January. Trough for U.S. defined as late March / early April Note: Data from North America, Europe, China, Japan Jefferies LLC / September 2020 11 2 The Biggest Cities Will Be The Most Impacted Slowing Growth In …Leading to Expectations for Suggesting an Increasing the Biggest U.S. Cities… Growth in Small to Mid-tier Cities Reliance on Vehicles Annual Change In US County US Urban Population by Size Class Average % Drive to Work 2.0% Population 400,000 Vehicle Ownership 76 1.7 % 350,000 Small and mid- sized cities continue to expand 1.5% 300,000 2 cities 250,000 2 cities 50 8 cities 1.1 % 1.0% 7 cities 200,000 2 cities 45 cities 1 city 150,000 36 cities 30 cities 0.5% 50 cities 100,000 43 cities 25 cities 50,000 28 cities 56 cities 53 cities 0.0% '10 - '11 - '12 - '13 - '14 - '15 - '16 - '17 - '18 - 0 '11 '12 '13 '14 '15 '16 '17 '18 '19 1990 2018 2030E Urban Core Mature Suburbs <500k 500-1,000k 1-5m 5-10m 10m Large Cities Mid-Sized Large Cities Mid-Sized Emerging Suburbs Exurbs Cities Cities Source: Wall Street research, Redfin, U.S. Census Bureau, Brookings Institute. Jefferies LLC / September 2020 12 3 Auto eCommerce Will Grow Exponentially Automotive Transactions Remain A Massive Investors Remain Bullish on Digital Providers Untapped Market NTM Revenue Multiple YTD Stock Price Index Lead Gen: 10.7x Digital Providers: 5.0x Traditional Dealers: 0.8x 70% 50% 48% ~$1T 30% 14% 10% (1%) (10%) 3.6% (30%) Penetration (50%) in 2019 The Largest Players Are Expanding Footprint And Capabilities Lead Gen Digital Providers Traditional Dealers Extending capabilities to dealer and further Geographic and facility expansion Expanding partnerships and dealerships integrating the transaction ◼ Copart opened 10+ new locations in North ◼ CarMax partnered with digital automotive ◼ AutoTrader acquired KeeResources, a provider America and Europe leader Edmunds, aiming to strengthen of software solutions, data and services to the CarMax’s new omni-channel experience automotive industry ◼ Carvana created ~2,000 new jobs over the last year and built new facilities in various cities ◼ Lithia Motors acquired ~10 new dealerships ◼ CarGurus acquired car shopping platform including Cincinnati, Chesterfield, and over the last year Autolist, hoping to drive consumer traffic and Oklahoma City shopper connections for dealers across both sites Source: Industry research and Capital IQ as of 9/25/20.