UBER - Uber Technologies, Inc.

NYSE - NYSE Delayed price. Currency in USD
36.80
-0.60 (-1.60%)
At close: 4:00PM EST
Stock chart is not supported by your current browser
Previous close37.40
Open37.50
Bid36.75 x 900
Ask36.75 x 1000
Day's range36.25 - 37.67
52-week range25.58 - 47.08
Volume21,201,280
Avg. volume30,932,109
Market cap62.774B
Beta (5Y monthly)N/A
PE ratio (TTM)N/A
EPS (TTM)N/A
Earnings date05 Feb 2020
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target est44.43
  • Broadcom, Amazon, Uber, SoftBank, Bayer: Companies to Watch
    Yahoo Finance

    Broadcom, Amazon, Uber, SoftBank, Bayer: Companies to Watch

    Broadcom, Amazon, Uber, SoftBank and Bayer are the companies to watch

  • Uber Technologies (UBER) Dips More Than Broader Markets: What You Should Know
    Zacks

    Uber Technologies (UBER) Dips More Than Broader Markets: What You Should Know

    Uber Technologies (UBER) closed the most recent trading day at $36.80, moving -1.6% from the previous trading session.

  • Tech CEOs in Davos Dodge Issues by Warning Audiences About AI
    Bloomberg

    Tech CEOs in Davos Dodge Issues by Warning Audiences About AI

    (Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.Technology’s most influential leaders have a new message: It’s not us you need to worry about -- it’s artificial intelligence.Two years ago big tech embarked on a repentance tour to Davos in response to criticism about the companies’ role in issues such as election interference by Russia-backed groups; spreading misinformation; the distribution of extremist content; antitrust violations; and tax avoidance. Uber Technologies Inc.’s new chief even asked to be regulated.These problems haven’t gone away -- last year tech’s issues were overshadowed by the world’s --- but this time executives warned audiences that AI that must be regulated, rather than the companies themselves.“AI is one of the most profound things we’re working on as humanity. It’s more profound than fire or electricity,” Alphabet Inc. Chief Executive Officer Sundar Pichai said in an interview at the World Economic Forum in Switzerland on Wednesday. Comparing it to international discussions on climate change, he said, “You can’t get safety by having one country or a set of countries working on it. You need a global framework.”The call for standardized rules on AI was echoed by Microsoft Corp. CEO Satya Nadella and IBM CEO Ginni Rometty.“I think the U.S. and China and the EU having a set of principles that governs what this technology can mean in our societies and the world at large is more in need than it was over the last 30 years,” Nadella said.It’s an easy argument to make. Letting companies dictate their own ethics around AI has led to employee protests. Google notably decided to withdraw from Project Maven, a secret government program that used the technology to analyze images from military drones, in 2018 after a backlash. Researchers agree.“We should not put companies in a position of having to decide between ethical principles and bottom line,” said Stefan Heumann, co-director of think tank Stiftung Neue Verantwortung in Berlin. “Instead our political institutions need to set and enforce the rules regarding AI.”The current wave of AI angst is also timely. In a few weeks the EU is set to unveil its plans to legislate the technology, which could include new legally binding requirements for AI developers in “high-risk sectors,” such as health care and transport, according to an early draft obtained by Bloomberg. The new rules could require companies to be transparent about how they build their systems.Warning the business elite about the dangers of AI has meant little time has been spent at Davos on recurring problems, notably a series of revelations about how much privacy users are sacrificing to use tech products. Amazon.com Inc. workers were found to be listening in to people’s conversations via their Alexa digital assistants, Bloomberg reported last year, leading EU regulators to look at more ways to police the technology. In July, Facebook Inc. agreed to pay U.S. regulators $5 billion to resolve the Cambridge Analytica data scandal. And in September Google’s YouTube settled claims that it violated U.S. rules, which ban data collection on children under 13.Read more: Thousands of Amazon Workers Are Listening to What You Tell AlexaPrivacy DebateInstead of apologies over privacy violations, big tech focused on how far it has come in the past few years in terms of looking after personal data.Facebook Vice President Nicola Mendelsohn said in an interview with Bloomberg Television on Friday that the company has rolled out standards similar to Europe’s General Data Protection Regulation in other markets.“Let’s be very clear, we already have regulation, GDPR,” Mendelsohn said in response to a question about the conversations Facebook is having with regulators. “We didn’t just do it in Europe where it was actually regulated. We thought it was a very considered and useful way of thinking about things so we actually rolled a lot of that out around the world as well.”Keith Enright, Google’s chief privacy officer, also spoke at a separate conference in Brussels this week about how the company is working to find ways to minimize the amount of customer data it needs to collect.“We’re right now really focused on doing more with less data,” Enright said at a data-protection conference on Wednesday. “This is counter-intuitive to a lot of people, because the popular narrative is that companies like ours are trying to amass as much data as possible.”Holding on to data that isn’t delivering value for users is “a risk,” he said.But regulators are still devising on new laws to protect user data. The U.S. is working on federal legislation that calls for limits on sharing customer information and, similar to GDPR, require companies get consent from consumers before sharing data with third parties. Facebook, Amazon, Apple Inc. and Microsoft all increased the amount they spent on lobbying in Washington last year, with some of those funds going to pushing industry-friendly privacy bills.And even though tech executives called for AI rules, they still cautioned against regulating too much, too fast. Pichai reminded lawmakers that existing rules may already apply in many cases. Lawmakers “don’t need to start from scratch” he said.\--With assistance from Nate Lanxon and Stephanie Bodoni.To contact the reporters on this story: Amy Thomson in London at athomson6@bloomberg.net;Natalia Drozdiak in Brussels at ndrozdiak1@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Jillian WardFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Uber Offers London Drivers Discounted Nissans After Hiking Fares
    Bloomberg

    Uber Offers London Drivers Discounted Nissans After Hiking Fares

    (Bloomberg) -- A year ago, Uber Technologies Inc. hiked the price of rides in London and placed the surcharges into a fund that would help drivers switch to electric vehicles. On Friday, Uber said drivers would be able to start tapping into that fund in the form of discounts on electric cars made by Nissan Motor Co.The two companies agreed to offer 2,000 Nissan Leaf electric cars to Uber drivers in London as part of the program. The average Uber driver in London would save about 4,500 pounds ($5,900) off the cost of a Leaf through a combination of a manufacturer discount and a rebate from the electric vehicle fund, Uber said. The company declined to provide more details on the offer price.Automakers are hoping environmentally conscious businesses and customers will drive demand for electric cars. The need to boost sales is especially acute for those with operations in the U.K., which includes Japan’s Nissan, amid the uncertainties of Britain’s planned exit from the European Union.Read more: U.K. to Ensure No Brexit Cliff-Edge for Carmakers, Minister SaysThe auto industry suffered a series of setbacks last year as U.K. production slumped and manufacturers idled plants to cope with three Brexit deadlines that came and went. Jaguar Land Rover Automotive Plc said it’s cutting thousands of jobs, Honda Motor Co. is closing its only British factory in 2021, and Nissan scrapped plans to build the X-Trail sports utility vehicle in Sunderland. The Japanese automaker will instead use that facility to make the 2,000 Leafs for Uber.Uber increased the cost of taking a ride in London by 15 pence per mile in January 2019 in order to raise a target of 200 million pounds for the electric vehicle fund. Uber said it raised 80 million pounds in the first year. Drivers must accrue at least 1,000 pounds in contributions to the fund before receiving credits.The company’s future in the city is uncertain after regulators revoked its license to operate there in November. Although Uber can continue to facilitate rides while it appeals the decision, regulators have expressed reservations about the company’s ability to guarantee the safety of passengers. This week, London’s main transportation regulator released a scathing report detailing its concerns about the service.To contact the reporter on this story: Nate Lanxon in London at nlanxon@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Mark Milian, Anne VanderMeyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Uber Failed to Flag Complaints of Assault to London Regulator
    Bloomberg

    Uber Failed to Flag Complaints of Assault to London Regulator

    (Bloomberg) -- London’s main transportation regulator has released a scathing document detailing why it moved to ban Uber Technologies Inc. from operating in the city. The regulator lists several safety concerns, including the charge that it didn’t receive proper notification of alleged sexual assaults involving the platform.The report comes just months after the regulator, Transport for London, revoked Uber’s license to operate in the city for the second time in less than three years. Uber is currently doing business in London under a temporary license, and fighting for the ability to continue operating in one of the world’s biggest hubs.Sent to Uber in late November but only released this week, the regulator’s 62-page document focuses on charges that Uber failed to adequately verify drivers’ identities and safeguard the service for passengers. It also says the company blamed “system or human error” for its failing to promptly notify Transport for London about seven incidents that led the company to suspend a driver. A number of these related to allegations of rape and sexual assault, the report said.In November, “We found Uber not fit and proper to hold a new private hire operator’s license,” said Helen Chapman, the regulator’s licensing director, noting that the company had submitted an appeal.Uber declined a request for comment.Transport for London, TfL, has previously said that at least 14,000 Uber trips involved drivers who weren’t who they said they were, thanks to the company’s fallible license-verification process. One driver found exploiting Uber’s app had already had a private hire license revoked by the regulator after it discovered the person had received a caution for distributing indecent images of children, it said.In the report, the U.K. regulator also attacked Uber’s system for monitoring drivers’ insurance status, stating that the ride-hailing company had failed to stop uninsured drivers from working on the app.The regulator said that some drivers were able to hack Uber’s platform by manipulating their GPS settings when uploading photos, a tactic that allowed them to change photos or put their photo on another driver’s account. Drivers are banned from doing so in the U.K. Five of these drivers had already been dismissed by Uber, the report said.The regulator also flagged a software patch used by Uber drivers to allow them to see passenger destinations, mainly a strategy used by drivers at airports. The issue was brought to TfL’s attention by an unnamed third party.The ability for drivers to see passenger destinations in advance of accepting a trip is significant because it means drivers can reject shorter, less pricey trips in favor of more profitable long hauls. Drivers worldwide have long requested the feature, with Uber making it available just this month to California drivers as a way to strengthen its case that its drivers are free agents and should not be governed by a new state law seeking to reclassify them as employees.Uber is currently preparing an appeal to TfL’s decision to revoke its license, a process that could take years, and during which time the company will be allowed to continue operating in the city. Meanwhile, Uber is still flagging potential issues to TfL. In November, the company told the regulator about an online scam targeting drivers to create fake trips for charging passengers.\--With assistance from Nate Lanxon.To contact the reporter on this story: Giles Turner in London at gturner35@bloomberg.netTo contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Anne VanderMey, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Ahead of Uber exit, Colombian president calls for tech level playing field
    Reuters

    Ahead of Uber exit, Colombian president calls for tech level playing field

    Colombia's President Ivan Duque said technology companies were welcome in his country, but they had to operate on a level playing field with local firms. "It's smart regulation to level the field and to … not … have unfair competition among parties," he told Reuters at the annual meeting of the World Economic Forum. Duque's comments follow a court order late last year against ride-hailing company Uber Technologies Inc. The Andean country has ordered Uber to cease operations after a judge said it violated competition rules.

  • Uber self-driving cars, with humans in control, to cruise Washington, D.C. Friday
    Reuters

    Uber self-driving cars, with humans in control, to cruise Washington, D.C. Friday

    Uber Technologies Inc will put self-driving vehicles on Washington, D.C. roads Friday with human drivers in control, the ride share company said on Thursday, as it seeks to collect data for future deployment of fully self-driving vehicles. The goal is for computers to operate the vehicles eventually.

  • After a Stellar 2019, What Awaits Global IPO ETFs in 2020?
    Zacks

    After a Stellar 2019, What Awaits Global IPO ETFs in 2020?

    Global IPO activity had a pretty decent year in 2019 and is expected to remain busy in 2020.

  • Bloomberg

    Didi Fights to Prove It’s More Than Just China’s Uber

    (Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.China’s Didi Chuxing, after two horrendous years in its ride-hailing business, is losing the confidence of at least some investors that it can live up to its once-lofty ambitions.Shares in Didi are trading privately at as much as a 40% discount to its peak valuation, according to people familiar with matter. They changed hands at about $33 to $35 per share in private trades late last year, compared with a record of $55 per share, the people said, requesting not to be named because the matter is private. A Didi representative declined to comment.While the private transactions were small and Didi has scores of investors, the hefty discount marks concern over a company that had ranked among the world’s premier startups with a valuation of $56 billion, according to CB Insights. Investors have begun to question whether the ride-hailing model can ever turn a profit after disappointing public offerings from Uber Technologies Inc. and Lyft Inc. Didi, led by founder and Chief Executive Officer Cheng Wei, has endured even deeper troubles after the murder of two passengers and intense scrutiny from regulators.“Many investors are questioning whether Didi can ever turn profitable,” said Shawn Yang, an analyst at Blue Lotus Capital Advisors. “Uber and Lyft’s share tanks underscore skepticism about the industry as a whole.”It’s another challenge for SoftBank Group Corp. and founder Masayoshi Son, who took a hit last year with the implosion of WeWork. SoftBank is the biggest backer of ride-hailing companies, with stakes in Didi, Uber, Singapore’s Grab and India’s Ola.The Japanese company invested a total of about $18 billion in the sector, making it the biggest bet in Son’s portfolio, according to Sanford C. Bernstein. SoftBank took a writedown on those holdings after the decline in Uber shares, Bloomberg News reported in November.Still, Didi retains a dominant position in Chinese ride-hailing, with 93% of total daily active users in 2019, according to Bernstein. That gives it a powerful platform in an enormous market, despite the latest setbacks. In a vote of confidence, Toyota Motor Corp. put $600 million into Didi in July at the $56 billion valuation, according to a person familiar with the matter.Didi is trying to prove it can get back on track. It’s reviving expansion plans after a regulatory crackdown in the wake of the 2018 murders. It has stepped up safety measures, retooled management and turned to partners to broaden its network, a quicker way to expand with lower capital spending.“Didi is partnering with more third-party limousine companies,” said Julia Pan, a Shanghai-based analyst with UOB Kay Hian. ‘If it can maintain its commission above a certain rate, the demand is there and it should be able to make money eventually.”China’s Ride-Hailing Decline Hurting Car Sales, Bernstein SaysIt’s also trying to revive a lucrative car-pooling business and venturing into adjacent businesses, such as bike-sharing and food delivery. It’s expanding in Latin America, Australia and Japan, with an average of 4 million rides daily now outside of China.The company has deep cash reserves: It raised about $21 billion from backers including SoftBank, Toyota, Apple Inc. and Booking Holdings Inc., according to data compiled by Crunchbase. That’s helped it hold off competitors like Dida, Cao Cao and Shouqi Limousine & Chauffeur.Still, ride-hailing has gone from the most celebrated new business to one of the most scrutinized. Uber lost more than $1 billion in the third quarter alone, while Lyft reported $464 million in red ink the same period.While Didi doesn’t disclose financials publicly, it lost $1.6 billion in 2018, according to 36Kr. Its rider and driver app usage slid by 5% and 23%, respectively, in the third quarter, according to Sanford C. Bernstein. Didi’s challenges have delayed its time-line for both profitability and an initial public offering.This year, it faces one new uncertainty: a mysterious viral outbreak in China that has killed 17 and infected hundreds.“The first half could be another challenging period for Didi amid a pneumonia outbreak,” said Pan. “Drivers could be reluctant to put in hours and passengers could cut back on trips and traveling.”To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin ChanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Company News for Jan 22, 2020
    Zacks

    Company News for Jan 22, 2020

    Companies in the news are: NVAX, UBER, CSS, VIVE

  • Goldman Sachs's CEO just called WeWork's pulled IPO -- which Goldman was underwriting -- proof that the market works
    TechCrunch

    Goldman Sachs's CEO just called WeWork's pulled IPO -- which Goldman was underwriting -- proof that the market works

    It's hard to put a positive spin on a terrible situation, but that didn't stop Goldman Sachs CEO David Solomon earlier today. Asked during a session at the World Economic Forum in Davos about WeWork's yanked IPO in September, Solomon suggested it was proof that the listing process works, despite that the CFO of Goldman -- one of the offering's underwriters -- disclosed last fall that the pulled deal cost the bank a whopping $80 million. Investment banks had reportedly courted WeWork's business by discussing a variety of figures that led co-founder Adam Neumann to overestimate how it might be received by public market shareholders.

  • Judge dismisses defunct startup Sidecar's 2018 lawsuit against Uber
    Reuters

    Judge dismisses defunct startup Sidecar's 2018 lawsuit against Uber

    A federal judge in San Francisco dismissed a 2018 lawsuit brought against Uber by defunct startup Sidecar Technologies Inc, which pioneered on-demand ride-hailing. Sidecar went out of business in December 2015 and sold its assets to General Motors Co in 2016.

  • Uber Test Lets Some California Drivers Set Their Own Fares
    Bloomberg

    Uber Test Lets Some California Drivers Set Their Own Fares

    (Bloomberg) -- Uber Technologies Inc. is allowing some drivers in California to set their own rates, an effort to bolster the company’s argument that they’re independent workers and not employees.The feature is being tested across some airport routes “to preserve flexible work” for California drivers, a spokesman said. It’s the company’s latest tweak in response to Assembly Bill 5, which went into effect Jan. 1 and seeks to reclassify gig-economy workers as employees, entitled to benefits like sick days, and not independent contractors. Earlier this month, Uber tweaked the driver app to end flat-surge pricing, remove penalties for rejecting trips and display how much drivers can make on each trip.Drivers at Santa Barbara, Sacramento and Palm Springs airports will be able to increase their fares in 10% increments, to as much as five times the normal rate starting Tuesday. Uber will refine the feature in the coming weeks and, depending on the test results, could deploy it more broadly in the months ahead, the person said. The Wall Street Journal earlier reported on the fare test.California’s new labor law could upend the multi-billion-dollar operations built by Uber and other companies by leveraging on-demand labor. Uber, Lyft Inc., DoorDash Inc. and Postmates Inc. are championing a California ballot initiative to repeal the law while guaranteeing a minimum pay of $21 an hour and granting some benefits to drivers.Uber and Lyft analysts have flagged the law as an existential threat to the companies’ business models, citing costs that could increase by as much as 30%.Lyft President John Zimmer declined to comment on whether his company would emulate Uber’s move to allow drivers to set their own prices. “What’s happening in California is a big opportunity to think about how to combine the benefits of this new type of work with benefits that workers deserve,” he said in an interview on Bloomberg Television. “So we’re navigating that.”(Updates with Lyft president’s quote in the last paragraph.)\--With assistance from Candy Cheng and Jason Kelly.To contact the reporter on this story: Lizette Chapman in San Francisco at lchapman19@bloomberg.netTo contact the editors responsible for this story: Mark Milian at mmilian@bloomberg.net, Molly Schuetz, Robin AjelloFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Trump in Davos, Global Economic Outlook, Netflix Earnings & A Strong Buy Tech Stock - Free Lunch
    Zacks

    Trump in Davos, Global Economic Outlook, Netflix Earnings & A Strong Buy Tech Stock - Free Lunch

    The latest global economic news, which includes a deadly virus that began in central China. Trump's speech in Davos. Uber news. What to expect from Netflix earnings. And why GoDaddy (GDDY) is a Zacks Rank 1 (Strong Buy) stock right now...

  • Uber Analysts Say India Food Unit Sale Ends ‘Dark Chapter’
    Bloomberg

    Uber Analysts Say India Food Unit Sale Ends ‘Dark Chapter’

    (Bloomberg) -- Uber Technologies Inc. rose as analysts said its decision to sell its India food delivery unit to local rival Zomato improves the outlook for the company eventually turning a profit.The $172 million deal to offload Uber Eats in India, which struggled to gain traction in a market largely dominated by local competitors, is being interpreted as another step toward meeting Uber’s goal of becoming profitable on an Ebitda basis in 2021.Newly public companies once regarded as unicorns have faced mounting pressure as investors turn their focus to profitability after years of prioritizing growth at any cost. Uber, for example, has slumped 20% since its initial public offering in May.Uber rose as much 3.6% on Tuesday, pushing the stock to its highest intraday since Aug. 13.Here is what analysts had to say:Wedbush, Ygal ArounianThe sale “ends a dark chapter for Uber Eats in India, which has struggled to gain share vs entrenched domestic competitors Zomato and Swiggy.” The domestic rivals together control roughly 80% of the food delivery market in India, Wedbush said.Moves like these will likely be more commonplace as Uber Chief Executive Officer Dara Khosrowshahi and his team further rationalize the company’s Uber Eats food delivery business.“Taking a step back, we believe investor optimism on Uber is starting to finally perk up after a dark period since the IPO last year.”Maintains outperform rating and price target of $45.New Street, Pierre Ferragu“This move is coherent with the strategy the company has highlighted various times, of pulling back in immature markets with the least potential for the firm to accelerate its pace towards profitability.”New Street sees food delivery likely evolving into a duopoly, like ride-sharing, though it could be a three-player market in some circumstances.“As international ride-sharing and food delivery markets mature, we expect Uber’s profitability to increase over time and reach 6% Ebitda margin in 2024.”SunTrust Robinson Humphrey, Youssef Squali“Uber has effectively converted an asset that was burning ~$20m/month into a 10% stake in the leading local food delivery player,” he said, citing a cash burn number from an article by the India Times.The deal was a “smart, strategic” move and “shows strong execution on the part of Uber management, who has said repeatedly that unless Uber is 1 or 2 in a given market, or on a clear trajectory to get there, it would exit that market.”It gives the firm “increased confidence” in the company’s ability to hit adjusted Ebitda profitability in fiscal 2021.Maintains buy rating and price target of $56.What Bloomberg Intelligence Says:“Uber’s sale of its Eats business in India makes sense, and echoes a similar step in South Korea as it cuts ties with unprofitable markets. Pulling out of India could kick up a 500 basis-point headwind to the Eats segment’s sales growth yet deliver a 10 percentage-point boost to its Ebitda margin, which remains substantially lower than those of peers such as Just Eat and Grubhub.”-Analyst Mandeep Singh-Click here for the research(Updates shares in fourth paragraph, adds Bloomberg Intelligence commentary.)To contact the reporter on this story: Andres Guerra Luz in New York at aluz8@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Scott SchnipperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Glovo exits the Middle East and drops two LatAm markets in latest food delivery crunch
    TechCrunch

    Glovo exits the Middle East and drops two LatAm markets in latest food delivery crunch

    The new year isn't even a month old and the food delivery crunch is already taking big bites. Spain's Glovo has today announced it's exiting four markets -- which it says is part of a goal of pushing for profitability by 2021. On-demand food delivery apps may be great at filling the bellies of hungry consumers fast but startups in this space have yet to figure out how to deliver push-button convenience without haemorrhaging money at scale.

  • Goldman Sachs CEO defends work on failed WeWork IPO
    Yahoo Finance UK

    Goldman Sachs CEO defends work on failed WeWork IPO

    David Solomon said WeWork's failed IPO was 'a great example of the process working' during a panel at Davos.

  • Uber Sells India Food Business to Zomato to Cut Losses
    Bloomberg

    Uber Sells India Food Business to Zomato to Cut Losses

    (Bloomberg) -- Uber Technologies Inc. will sell Uber Eats in India to local rival Zomato in a $172 million deal, according to a person familiar with the transaction, underscoring the ride-hailing giant’s effort to cut back on loss-making operations.Uber agreed to offload the business in return for 9.99% of the Indian startup, maintaining a foothold in one of the world’s fastest-growing internet arenas, the companies said in a statement. As part of the deal, the U.S. company will shutter operations but direct all restaurants, delivery companies and diners to Zomato. Neither company offered up financial details but the person said the value of the Zomato shares Uber gets is estimated at about $172 million. The Indian startup was last valued at $2.2 billion.The deal marks yet another leg in a wave of consolidation sweeping the food delivery sector. Uber, which is trading well below the price at its initial public offering, seeks to hive off money-losing businesses to achieve its goal of being profitable -- before taxes, interest, depreciation and amortization -- by 2021. While it will continue to vie with Ola -- also backed by SoftBank Group Corp. -- in ride-hailing, exiting the food business can help staunch bleeding in one of the most competitive markets in the region. SoftBank founder Masayoshi Son has impressed upon the companies within his massive portfolio the need to curtail excess and focus on the bottom line.“It is another proof point -- following our decision to exit Uber Eats South Korea in October 2019 -- of our commitment to take a hard look at Eats markets where we do not have a path to leadership,” said Nelson Chai, Uber’s chief financial officer, in a financial filing. “At least some of the investment that we would have otherwise made in India will now be redeployed to other countries we serve where we believe we have a clear path to No. 1 or No. 2.”Uber expects to see a gain of about $143 million, net of tax, as a result of the deal, according to the filing. The shares were up about 1.7% in premarket trading in New York Tuesday.Read more: Red-Hot Indian Online Food Arena Delivers its Second UnicornWhat Bloomberg Intelligence SaysUber’s sale of its Eats business in India makes sense, and echoes a similar step in South Korea as it cuts ties with unprofitable markets. Pulling out of India could kick up a 500 basis-point headwind to the Eats segment’s sales growth yet deliver a 10 percentage-point boost to its Ebitda margin, which remains substantially lower than those of peers such as Just Eat and Grubhub.\- Mandeep Singh, analystClick here for the research.Uber started its food-delivery business in India in 2017 with much fanfare and a huge marketing budget. The San Francisco-based company has since poured resources into the operations to lure users with bargain food deals delivered to the doorstep, but it’s pitted against competitors with powerful investors.Naspers-backed Swiggy and Zomato, backed by Jack Ma’s Ant Financial, now lead India’s food-delivery sector, which like elsewhere is showing signs of consolidation. Bangalore-based ANI Technologies Pvt, which owns the Ola ride-hailing brand, acquired the Indian unit of Foodpanda in December 2017 and also faces an uphill struggle against the two established players.Uber, whose shares are down 22% from their 2019 IPO price, said it will continue to expand its core Indian business after unloading Eats. Employees that lose their jobs as a result of the deal can reapply for other roles within the company, the person said.“India remains an exceptionally important market to Uber and we will continue to invest in growing our local rides business,” Uber Chief Executive Officer Dara Khosrowshahi said in the statement.(Updates with comments from CFO in fourth paragraph and adds early share trading.)\--With assistance from Saritha Rai.To contact the reporter on this story: Edwin Chan in Hong Kong at echan273@bloomberg.netTo contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Uber Aims at Divesting Indian Food Delivery Unit to Zomato
    Zacks

    Uber Aims at Divesting Indian Food Delivery Unit to Zomato

    Uber's (UBER) sale of its food delivery business in India aims at loss reduction to enable the company earn profits in terms of EBITDA by 2021.

  • Uber tests feature allowing some California drivers to set fares
    Reuters

    Uber tests feature allowing some California drivers to set fares

    Uber drivers ferrying passengers from airports in Santa Barbara, Palm Springs and Sacramento can now charge up to five times the fare set by the company, Uber said. The company in a statement said it has made these and several other product changes to preserve flexible work for its drivers since California's new law designed to improve working conditions in the gig economy went into effect this year. "We're now doing an initial test of additional changes which would give drivers more control over the rates they charge riders," Uber said.

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