UBER - Uber Technologies, Inc.

NYSE - Nasdaq Real-time price. Currency in USD
32.00
+0.88 (+2.81%)
As of 3:28PM EDT. Market open.
Stock chart is not supported by your current browser
Previous close31.12
Open31.20
Bid32.03 x 1200
Ask32.04 x 1000
Day's range31.20 - 32.17
52-week range28.31 - 47.08
Volume6,426,103
Avg. volume9,436,938
Market cap54.392B
Beta (3Y monthly)N/A
PE ratio (TTM)N/A
EPS (TTM)-3.01
Earnings date4 Nov 2019
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target est49.53
Trade prices are not sourced from all markets
  • Bloomberg

    WeWork’s Communications Chief to Leave After Six Turbulent Months

    (Bloomberg) -- WeWork is losing its chief communications officer, concluding a six-month tenure marked by a constant stream of bad news.Jimmy Asci, who had joined the New York-based co-working company in April, resigned last Wednesday, according to a person familiar with the matter who wasn’t authorized to discuss the move publicly and asked not to be identified. Asci is at least the third executive in that department to leave in as many months. Asci declined to provide a statement on his departure.Since publishing a prospectus for an initial public offering in August, WeWork has faced criticism for an over-inflated valuation, lax corporate governance, steep and growing losses, and a divisive chief executive officer. Last month, the parent company, We Co., withdrew its IPO paperwork, and the board ousted the CEO, Adam Neumann.With funds running low, WeWork is looking to sell assets and expects to cut potentially thousands of jobs from its staff of about 12,500 this month, as it focuses on its core business of renting out office space. Banks are pitching investors on a rescue package that would be one of the riskiest junk-debt offerings in years.As the recent chaos at WeWork unfolded, different factions within the company hired communications consultants, who are often at odds with one another. Neumann, who’s now chairman, and his wife Rebekah use one firm, while the company has two others. Major investors, including SoftBank Group Corp., each have their own.The situation is not unlike what happened at Uber Technologies Inc., when co-founder Travis Kalanick was pressured by investors to resign as CEO. During that episode, Kalanick worked with Asci before WeWork hired him to run PR.Some rifts between the Neumann-era WeWork and its new co-CEOs have surfaced in recent weeks. Over the years, Neumann had hired family members and personal friends. In the days after Neumann’s departure, his replacements began scrutinizing those at the company with close ties to Neumann. Several of them left.(Updates with context in the fourth paragraph.)To contact the author of this story: Ellen Huet in San Francisco at ehuet4@bloomberg.netTo contact the editor responsible for this story: Mark Milian at mmilian@bloomberg.net, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Why Saudi Aramco’s ‘aspirational’ $2 trillion listing is leaving investors cold
    Yahoo Finance

    Why Saudi Aramco’s ‘aspirational’ $2 trillion listing is leaving investors cold

    Saudi Aramo is forging ahead with IPO plans that may value the company at $2 trillion, as investors weigh the risks associated with the offering.

  • Business Wire

    Glancy Prongay & Murray Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Uber Technologies, Inc.

    Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming December 3, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of Uber Technologies, Inc. (“Uber” or the “Company”) (NYSE: UBER) investors who purchased securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s May 2019 initial public offering (“IPO”). If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com.

  • Wendy's gets ready to make one of its biggest changes since 1969
    Yahoo Finance

    Wendy's gets ready to make one of its biggest changes since 1969

    Wendy's goes digital at long last.

  • Bloomberg

    Goldman’s Third Quarter Haunted by Uber, Other Investments

    (Bloomberg) -- Goldman Sachs Group Inc. was stung by slumping investments in some big names in the third quarter, hurting its most profitable business line.The firm took a $267 million hit in the period on public equity investments such as ride-hailing company Uber Technologies Inc., Avantor Inc. and Tradeweb Markets Inc. The bank probably took a writedown on its stake in WeWork after plans for an initial public offering collapsed. The losses fueled the worst performance in more than three years for the bank’s equity wagers in public and private companies.Goldman’s investment bankers also logged a much bigger decline in fees than analysts had predicted, down 15% from last year’s third quarter. They delivered their worst showing in David Solomon’s tenure as chief executive officer amid choppy markets and marquee deals that had to be pulled.That performance was softened by an improved showing from traders amid signs of a revival in Goldman’s biggest unit. Trading revenue rose 6% from a year earlier to $3.29 billion, the New York-based bank said Tuesday in a statement. That beat the $3.17 billion average estimate of analysts in a Bloomberg survey. Earlier in the day, JPMorgan Chase & Co. reported results that beat Wall Street estimates, driven by stronger than expected revenue from its fixed-income traders.See also: JPMorgan jumps after profit, fixed income top estimatesGoldman shares slumped 3.1% to $199.36 at 9:36 a.m. in New York, the worst performer among the four biggest U.S. banks that posted results Tuesday. The shares were still up 19% for the year.Gains from investments with its own money are sometimes Goldman Sachs’s biggest profit driver, and executives have argued they showcase a core skill that should be valued by shareholders. But the slump in prized holdings will add to a perception that the investments are subject to unpredictable swings even as the company works to provide more disclosure.The losses from Uber and other investments in the third quarter come after those positions had delivered big gains in previous periods.Wall Street banks grappled with increased volatility in the third quarter, while executives grew cautious about its benefits to their trading desks. Goldman had snatched market share from weaker rivals in a boost for its operations earlier in the year.Goldman Sachs is in the middle of a significant strategic shift as it retools businesses. The push includes a nascent consumer-banking effort, cash-management tools and new initiatives to win more business from existing clients. The firm also rolled out credit cards as part of a partnership with Apple Inc.Investors and analysts still await a more-detailed strategic update from Solomon, who took the top job more than a year ago. He has vowed to tighten up the partnership ranks and installed new leaders across divisions, even as he works for a resolution to the 1MDB banking scandal.Read more: Goldman’s 1MDB case in Malaysia to be moved to higher courtFees from helping companies sell shares dropped 20% from the second quarter to $385 million. Embattled office-sharing firm WeWork and Ari Emanuel’s Endeavor Group abandoned plans for an IPO amid tepid investor interest. The debt-capital markets business brought in $586 million, a decline from the previous quarter.The firm did highlight an increase in its investment-banking backlog and will also benefit when Saudi Aramco brings its mammoth share sale to market. It’s advising on a potentially massive share sale for the oil giant, with the fee pool for advisers likely to total as much as $450 million.The growth of Goldman’s Marcus business, which offers consumer loans and savings accounts, has forced the bank to pay attention to falling rates. The firm cut the amount of interest it pays depositors with online savings accounts at least three times since June. But Goldman’s lending to private wealth clients as well as through Marcus resulted in $891 million of net interest income, a record for a quarter.Other HighlightsEquities revenue rose 5% while fixed-income climbed 8%Earnings per share tumbled 24% to $4.79, missing the average estimate of $4.86Revenue dropped 6% to $8.32 billionProvision for credit losses jumped 67% to $291 million(Updates with share decline in fifth paragraph.)\--With assistance from Dan Reichl.To contact the reporter on this story: Sridhar Natarajan in New York at snatarajan15@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Peter Eichenbaum, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Paytm Nears SoftBank, Ant Fundraising at a $16 Billion Valuation
    Bloomberg

    Paytm Nears SoftBank, Ant Fundraising at a $16 Billion Valuation

    (Bloomberg) -- Paytm is close to scoring $2 billion of new financing from investors including Jack Ma’s Ant Financial and SoftBank Group Corp., a person familiar with the matter said, describing a mega-deal that will raise the temperature in India’s increasingly heated financial payments arena.Rob Citrone’s Discovery Capital Management is also in discussions to join a funding round that values the country’s top online financial services firm at $16 billion, the person said, asking not to be identified talking about a private deal. The funding will be split evenly between equity and debt and is aimed at helping Paytm fend off an influx of rivals, the person said. Talks are in their final stages but the terms could still change, the person added.If a deal is finalized, Paytm could outstrip fellow high-profile Asian startups such as Grab and Gojek in valuation. Billionaire Paytm founder Vijay Shekhar Sharma is raising capital to protect the startup’s share of a potentially $1 trillion Indian payments market from newer entrants Facebook Inc., Alphabet Inc.’s Google and Walmart Inc.-owned Flipkart’s PhonePe. Over the past year, a string of new apps have made payments increasingly easy, bringing discounts and cash bonuses to young, smartphone-savvy users.Paytm remains the leader for now. The firm has in a decade become India’s biggest digital payments brand, attracting big names in investing from Alibaba co-founder Ma and SoftBank founder Masayoshi Son to Warren Buffett. Sharma got a huge boost in 2016 after India’s government moved to eliminate most of the nation’s paper money in circulation in a bid to curb corruption. His startup, a pioneer in the country’s nascent field, saw tens of millions of consumers and hundreds of thousands of businesses sign up for digital services in a matter of months.“India is a large market,” said Kunal Pande, head of financial services risk consulting at KPMG. “Digital payments adoption is growing quickly, yet there is room for massive growth as users get comfortable transacting digitally. The large business opportunity makes it attractive for both domestic startups and large global players.”Read more: Facebook and Google Chase a New $1 Trillion Payments MarketPaytm, which is also backed by Alibaba Group Holding Ltd., declined to comment in response to emailed questions. Ant had no immediate comment when contacted, while Discovery Capital and SoftBank declined to comment.Sharma is now extending his online empire into e-commerce and banking, even as others encroach on his turf. The Indian payments market remains a chaotic field where the rules are hazy on what players can offer, yet its promise has lured a string of competitors including Indian banks, its postal service and its richest man, Mukesh Ambani.Credit Suisse Group AG now estimates that the Indian digital payments market will touch $1 trillion by 2023 from about $200 billion currently. It’s a market with huge potential: Cash still accounts for 70% of all Indian transactions by value, according to Credit Suisse, and neighboring China is far more advanced with a mobile payments market worth more than $5 trillion.Ant Financial, China’s largest provider of internet financial services and one of Paytm’s earliest backers, has said it will continue investing in mobile-payment providers around the world to boost offshore revenue and buttress itself against rising competition and tighter regulation at home.It’s not clear how much SoftBank would contribute, but the Japanese company is going through a rocky stretch. SoftBank’s shares are down about 30% from their peak this year as investors, unnerved by the WeWork turmoil and Uber Technologies Inc.’s disappointing debut, grow skittish about startup valuations.\--With assistance from Lulu Yilun Chen, Hema Parmar and Vincent Bielski.To contact the reporter on this story: Saritha Rai in Bangalore at srai33@bloomberg.netTo contact the editors responsible for this story: Arijit Ghosh at aghosh@bloomberg.net, ;Sarah Wells at smcdonald23@bloomberg.net, Edwin Chan, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • SoftBank-Backed Tokopedia in Talks for Pre-IPO Funding Round
    Bloomberg

    SoftBank-Backed Tokopedia in Talks for Pre-IPO Funding Round

    (Bloomberg) -- PT Tokopedia, the online marketplace backed by the SoftBank Vision Fund and Alibaba Group Holding Ltd., has begun discussions with potential investors for what’s likely to be its final private funding round before a dual stock market listing.Indonesia’s largest online mall is considering listing shares at home as well as in another as-yet-undecided location, Chief Executive Officer William Tanuwijaya told Bloomberg News. But he wouldn’t specify a timetable for an initial public offering, citing uncertain market conditions in a trade war.Tokopedia, the country’s most valuable startup after ride-hailing giant Gojek, is focused on its home market for now but an overseas listing should raise its profile while attracting new investors. Tanuwijaya said the startup he co-founded 10 years ago is aiming to break even next year. Its gross merchandise value should triple to as much as 222 trillion rupiah ($16 billion) in 2019, he said. Revenue is growing faster than GMV, while its community of sellers rose to 6.4 million from about 5 million last year, he added.“Dual-listing is most likely to be our approach” because the Indonesia-focused e-commerce site wants its consumers and sellers to also become shareholders, the 37-year-old founder said in an interview in Jakarta. “We are now in the process of picking the right partners who believe in our vision and mission.”SoftBank Vision Fund, Alibaba Lead $1.1 Billion Tokopedia RoundTokopedia is gunning for a listing at a time many of its peers around the world are tapping the brakes. Uber Technologies Inc.’s disappointing debut and the chaos surrounding WeWork’s botched IPO have put startups under pressure to prove their business model can lead to revenue and profit growth. The co-founders of Grab, Southeast Asia’s most valuable startup and another of SoftBank’s portfolio companies, have said they’re not planning an IPO any time soon.With a looming risk of a global recession, it’s crucial for large platforms like Tokopedia to establish a sustainable business by generating profits, said Chatib Basri, a former finance minister and senior lecturer at the University of Indonesia. “When there is a disruption to a company as big as Tokopedia, which has 90 million monthly active users, it could result in a systemic effect,” he said.Tokopedia’s advantage is its presence in an Indonesian e-commerce market projected to expand from $21 billion in 2019 to $82 billion by 2025, according to a study by Google, Temasek Holdings Pte and Bain & Co. Unlike peers Alibaba’s Lazada and Tencent Holdings Ltd.-backed Shopee, which operate across Southeast Asia, Tokopedia has chosen to expand deeper into rural areas of Indonesia, an archipelago of more than 17,000 islands where online shopping is still relatively under-developed.“Indonesia’s e-commerce penetration is still 4% to 5%, so the room for growth is still big,” Tanuwijaya said.\--With assistance from Viriya Singgih.To contact the reporter on this story: Yoolim Lee in Singapore at yoolim@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • House panel 'strongly' urges Uber, Lyft to take part in hearing
    Reuters

    House panel 'strongly' urges Uber, Lyft to take part in hearing

    Uber Technologies Inc and Lyft have declined to appear at a hearing on Wednesday on ride-hailing industry issues, the chairman of the U.S. House of Representatives panel said, urging them to reconsider. "That is unacceptable," Representative Peter DeFazio told the company's chief executives in letters dated Monday. DeFazio said the House Transportation and Infrastructure Committee held numerous conversations with the companies' staff over the last few weeks, and "strongly urged" the companies to take part in the hearing.

  • U.S. House panel 'strongly' urges Uber, Lyft to take part in hearing
    Reuters

    U.S. House panel 'strongly' urges Uber, Lyft to take part in hearing

    Uber Technologies Inc and Lyft have declined to appear at a hearing on Wednesday on ride-hailing industry issues, the chairman of the U.S. House of Representatives panel said, urging them to reconsider. "That is unacceptable," Representative Peter DeFazio told the company's chief executives in letters dated Monday. DeFazio said the House Transportation and Infrastructure Committee held numerous conversations with the companies' staff over the last few weeks, and "strongly urged" the companies to take part in the hearing.

  • Bloomberg

    Uber Dismisses 350 Employees In a ‘Last Wave’ of Job Cuts

    (Bloomberg) -- In his latest bid to reduce losses at Uber Technologies Inc., Dara Khosrowshahi fired about 350 employees, in what he said is the “last wave” of workforce reductions.The cuts hit a handful of divisions, including self-driving car development and food delivery. Uber dismissed more than 800 employees over two rounds of cuts in July and September.Since a disappointing initial public offering in May, Uber’s stock price is down about 30%. Investors have expressed concerns about increased losses and slowing growth. The ride-hailing company lost more than $5 billion in the second quarter. News of the additional job cuts helped push Uber’s stock up 4% on Monday.In an email to staff from Chief Executive Officer Khosrowshahi reviewed by Bloomberg, he said executives may elaborate on the job cuts in a companywide meeting on Tuesday. TechCrunch reported the news earlier Monday, and an Uber spokesman confirmed the cuts. About 70% of the dismissals occurred in North America.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 SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Wendy's is going through its biggest reinvention in 50 years
    Yahoo Finance

    Wendy's is going through its biggest reinvention in 50 years

    Big changes are coming to Wendy's in 2020. Yahoo Finance speaks with Wendy's CEO Todd Penegor about what's on tap.

  • Bloomberg

    A Strong U.S. Consumer Won't Prevent a Recession

    (Bloomberg Opinion) -- With the unemployment rate at a 50-year low, the hope is that the U.S. consumer will more than offset an otherwise faltering economy. Don’t bet on it.Clearly, the broad economy is not only weak, but weakening. The yield curve has inverted, with 10-year Treasury note yields falling below two-year yields. Every time that’s happened in the post-war era, a recession has followed if it hadn’t already commenced. No exceptions. The Federal Reserve Bank of St. Louis reports that the lower real interest rates are at the time of inversion, the longer the recession and the higher the unemployment rate climbs. The real 10-year yield is minus 0.13%, even lower than the 2.2% that preceded the 2007-2009 Great Recession.The manufacturing purchasing managers’ index fell further below the critical 50 level in September to 47.8, indicating contraction. Manufacturing employment constitutes just 8.5% of gross domestic product, but add in transportation, warehousing and retailing, the total rises to 30%. Manufacturing jobs in September fell by 2,000, compared with an average monthly gain of 10,000 the past year. The PMI index for services fell to its lowest reading in three years last month.Indexes compiled by the Federal Reserve Banks of New York and Cleveland that show the probability of a recession are already at levels consistent with a downturn, and the Business Roundtable CEO Economic Outlook survey plunged from 118.6 in the first quarter of 2018 to 79.2 in the third quarter. Industrial production has dropped in the last two reported months. Capital spending is falling due to trade war uncertainties and excess capacity.A year ago, Wall Street analysts expected S&P 500 Index operating profits to rise 10% this year. But now they look for just a 1.9% gain, and foresee profits falling 4.1% in the third quarter from a year ago, according to FactSet data. Junk bonds are being dumped, pushing the yield spread on company debt rated CCC to 10.7 percentage points from 6.7 percentage points early last year, foretelling earnings weakness. Investors are shunning Uber Technologies Inc., WeWork and other so-called unicorns that have no earnings horns.Real consumer spending is 70% of GDP and it declined in seven of 13 post-war recessions, though it rose in the other six. Still, even a slowing of growth in household outlays, combined with weakness in capital spending, housing and foreign trade, will push the economy into decline. Job growth is slowing with an average of 154,000 new monthly payroll jobs in the last six months, compared with 204,000 in the previous half-year period. Average hourly earnings growth slowed from 3.2% in the year ending in August to 2.9% in September.Consumer confidence and expectations can have significant effects on future spending, and both the University of Michigan and Conference Board surveys have fallen in recent months. A year ago, I was a lonely voice calling for a recession to start in 2019.  Now, others are joining, and instilling caution in consumers that can be self-fulfilling.A New York Fed survey shows a precipitous drop in consumer expectations of inflation, and the central bank rightly fears that households will hold off buying in anticipation of lower prices. The University of Michigan survey finds continuing declines in households’ evaluation of buying conditions for vehicles and houses. The survey also found that, as of July, 59% of respondents expect interest rates to fall over the next 12 months, up from 22% in October 2018. Low and anticipated lower rates encourage people to delay spending and increase savings to meet retirement and other goals.Ongoing polarization of income and assets also means more money for the wealthy, who account for almost all household saving, and less for low-income spenders. The overall household savings rate has climbed from 1.9% in 2005 to more than 8% in August, according to the Bureau of Economic Analysis, and will no doubt continue to rise. Some 28% of Americans have no financial reserves and only 18% can cover six months or more of expenses, according to Bankrate’s Financial Security poll.Increases in auto, credit card and student loans are pressuring consumers to restrain spending. Total household debt leaped from 65% of after-tax income in the early 1980s to 133% in 2007. Mortgage repayments and write-offs have reduced it, but only to 99%. It will probably return to its long-run norm, especially as the baby boomer generation is forced to save if it doesn’t want to keep working long after retirement age.Look for weakness in employment and consumer spending in the coming months. That will seal the case for a recession.To contact the author of this story: Gary Shilling at agshilling@bloomberg.netTo contact the editor responsible for this story: Robert Burgess at bburgess@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.A. Gary Shilling is president of A. Gary Shilling & Co., a New Jersey consultancy, a Registered Investment Advisor and author of “The Age of Deleveraging: Investment Strategies for a Decade of Slow Growth and Deflation.” Some portfolios he manages invest in currencies and commodities. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • WeWork Said to Weigh Bailout That Hands Control to SoftBank
    Bloomberg

    WeWork Said to Weigh Bailout That Hands Control to SoftBank

    (Bloomberg) -- WeWork is considering a bailout that will hand control of the co-working giant to SoftBank Group Corp., according to a person familiar with the matter, one of two main options to rescue the once high-flying startup.The Japanese investment powerhouse controlled by billionaire Masayoshi Son is convinced it can turn around the cash-strapped American company with the right financial controls in place, the person said, asking not to be identified talking about internal deliberations. WeWork’s board and backers however are also weighing another option: JPMorgan Chase & Co. is leading discussions about a $5 billion debt package, Bloomberg has reported.Either rescue package, or some combination of them, would ease a cash crunch that could leave the office-sharing company short of funds as soon as next month. We Co., the parent of WeWork, had been headed toward one of the year’s most hotly anticipated IPOs before prospective investors balked at certain financial metrics and flawed governance, turning the American giant into a cautionary tale of private market exuberance and costing the company’s top executive his job.The fast-growing, money-losing startup had been counting on a stock listing -- and a $6 billion loan contingent on a successful IPO -- to meet its cash needs.Son, SoftBank Risk Too Much With WeWork Takeover: Tim CulpanRead more: WeWork Is in Talks for $5 Billion Debt Package With LendersThe Wall Street Journal first reported that SoftBank may be discussing a deal to gain control of WeWork. Representatives for the Japanese company weren’t immediately available for comment Monday, a national holiday.SoftBank is already WeWork’s biggest shareholder but the proposed deal would shore up its control of the startup, the person said, declining to elaborate on when a decision on the competing offers might be reached. The Japanese company is in advanced talks to acquire more shares at a significantly lower valuation than the $47 billion WeWork sported in January, two people familiar with those discussions said last week. The New York Times has reported that members of the board would meet Monday to decide on which bailout to select.If the board opts for the SoftBank deal, the Japanese company will be taking on a troubled enterprise at a time it’s struggling to convince the market about its longer-term investment vision. It’s also busy wooing potential investors for a successor to its record-breaking Vision Fund.Read more: SoftBank’s Son Is ‘Embarrassed’ By Record, Impatient to ImproveSon is going through a rocky stretch after repositioning his company from a telecommunications operator into an investment conglomerate, with stakes in scores of startups around the world. He built a personal fortune of about $14 billion with spectacularly successful bets on companies such as Alibaba Group Holding Ltd. But SoftBank’s shares are down about 30% from their peak this year as investors, unnerved by WeWork and Uber Technologies Inc.‘s disappointing debut, grow skittish about startup valuations. In an interview with the Nikkei Business magazine, Son said he is unhappy with how far short his accomplishments to date have fallen of his goals.WeWork and Uber may be losing money now, but they will be substantially profitable in 10 years’ time, Son said in that interview. But at a private retreat for portfolio companies late last month, he had a different message: get profitable soon. At the gathering, held at the five-star Langham resort in Pasadena, California, Son also stressed the importance of good governance. Just days later, SoftBank led the ouster of WeWork’s controversial co-founder Adam Neumann.“WeWork has retained a major Wall Street financial institution to arrange a financing,” a representative for the U.S. company said in a statement on Sunday. “Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company’s management and its bankers over the course of this past week and this coming week.”(Updates with details of SoftBank investments from the sixth paragraph)To contact the reporters on this story: Gillian Tan in New York at gtan129@bloomberg.net;Michelle F. Davis in New York at mdavis194@bloomberg.net;Davide Scigliuzzo in New York at dscigliuzzo2@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, ;Tom Giles at tgiles5@bloomberg.net, Edwin Chan, Virginia Van NattaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Uber and Banco Inter in talks to forge partnership in Brazil: source
    Reuters

    Uber and Banco Inter in talks to forge partnership in Brazil: source

    Brazilian lender Banco Inter SA and Uber Technologies Inc are in talks to forge a partnership in financial services, a source familiar with the matter said, in a move that shows how Japan's SoftBank Group Corp is working to integrate its business in Latin America. SoftBank, which is a shareholder in Uber, acquired a roughly 15% stake in Banco Inter this year. The partnership could target both Uber's drivers and Banco Inter's more than 3 million clients.

  • Lyft follows Uber in suing NYC over cruising time caps
    Reuters

    Lyft follows Uber in suing NYC over cruising time caps

    The lawsuit, filed by the San Francisco-based ride-hail company on Friday, argues that the cruising rule is arbitrary and threatens to shift business away from ride-hailing companies like Lyft in favour of taxis. "This rule is not a serious attempt to address congestion, and would hurt riders and drivers in New York," Lyft spokesman Campbell Matthews said in a statement to Reuters. The "cruising cap" rule, implemented by the city's Taxi and Limousine Commission (TLC), sets a 31% limit on how much time drivers of app-based vehicles may drive without passengers in Manhattan south of 96th Street, meaning they would have to have fares at least 69% of driving time.

  • 'One app to rule them all is dead': How Uber and Lyft can get disrupted
    Yahoo Finance

    'One app to rule them all is dead': How Uber and Lyft can get disrupted

    In Berlin, companies like Uber don't have a dominant hold on transportation. Instead, many companies compete for a slice of the market.

  • NYC Cabbies Say ‘No-Cost’ Bailout Would Avoid Financial Ruin
    Bloomberg

    NYC Cabbies Say ‘No-Cost’ Bailout Would Avoid Financial Ruin

    (Bloomberg) -- Bill de Blasio campaigned for New York mayor -- and for president -- vowing to help low-income workers and the least fortunate. But financially desperate taxi drivers, devastated by competition from Uber Technologies Inc. and similar companies, say he has abandoned them.The 22,000-member Taxi Workers Alliance says it has a plan at almost no net expense to the city: bailing out thousands of struggling drivers who can’t afford to repay expensive loans they took out from private lenders to buy city taxi-operating medallions. De Blasio counters that it would cost billions of dollars to solve the problem and says the federal government should pay.The plan would have the city take over the loans from private lenders for about 25% of their original value, as some private-equity companies have done. The city’s upfront expense would be $900 million or more, covering about 6,000 financially strapped cabbies owing an average of $600,000 each. But almost all the city’s cost would be recouped as drivers paid off their reduced debts, the drivers’ group says.“This would save me. I could afford this,” said Mohammed Hossain, 47, who bought his medallion for $854,000 in a city auction five years ago. “This was my dream, to own my business. The bank, the city, all made money on my dream.”Hossain owes about $705,000 to two banks for a medallion he says is now worth about $100,000. He recently renegotiated with the lenders, cutting in half his monthly payments to $1,500, but extending the loan term to 50 years. He intends to declare bankruptcy in two years when his car lease expires.Mulling BankruptcyAbout 26% of the city’s cabbies, like Hossain, are contemplating bankruptcy, and more than half are behind on their monthly bills, according to a 2018 report to the mayor. The report contained no recommendations for city-aided bailouts of loans that drivers now say they can’t pay. At least nine drivers have committed suicide in the past two years as the economic crisis has worsened, including one who shot himself outside City Hall’s front gate last year.The city reaped about $850 million in revenue from sales of 1,000 medallions from 2004 to 2014, promoting them as solid investments before 80,000 Uber drivers hit the city’s streets. That’s why city officials should be responsible for solving the problem, said Bhairavi Desai, executive director of the Taxi Workers Alliance.“The mayor thinks it would cost billions because they haven’t paid enough attention,” said Desai, who has promoted the plan to the administration and in testimony to the City Council and U.S. Congress. “Soon, we plan to be on the streets in masses so our voices will be amplified and heard.”The mayor is insisting that any driver bailout would involve direct cash payments covering the full amounts of each loan, a solution that his administration has said would cost as much as $13 billion. He has called on the federal government to take care of the problem.“There’s no way -- that figure is in the billions, you are talking about a lot of money that would go right to banks,” de Blasio said during an Oct. 7 WNYC radio interview. “If we did that, it would come out of schools, it would come out of police, it would come out of many other things. We just don’t have that money.”Driver AssistanceThe mayor has instead touted administration measures such as waiving about $10 million in medallion renewal fees, creating a drivers’ assistance center with financial and mental-health counselors, and placing a cap on the licensing of any more for-hire vehicles.The mayor’s stance pits him against leaders in the City Council who are willing to spend money to help the drivers. Ydanis Rodriguez, chairman of its Transportation Committee, says he and his colleagues, including Council Speaker Corey Johnson, agree that the city is partly to blame for the problem and for that reason “we bear some responsibility to fix it.”The proposed debt purchases will be one of several plans that he and others will push during budget negotiations with the mayor that begin next month, Rodriguez said.De Blasio doubts lenders would accept taking a big loss on their loans, said mayoral spokesman Seth Stein.Marblegate Asset Management LLC in Greenwich, Connecticut, has bought about 300 medallions and also some loans at a fraction of their original face value, according to a person familiar with the matter.At Aspire Federal Credit Union, based in Clark, New Jersey, general counsel Robert Bedford said the company would be interested in selling its 75 distressed taxi-medallion loans at a loss. “If the city wanted to talk to us, we would certainly be willing to discuss it,” he said.(Updates sourcing information in penultimate paragraph.)To contact the reporter on this story: Henry Goldman in New York at hgoldman@bloomberg.netTo contact the editors responsible for this story: Flynn McRoberts at fmcroberts1@bloomberg.net, William SelwayFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Gates-Backed Vir Biotechnology Flops in Trading Debut
    Bloomberg

    Gates-Backed Vir Biotechnology Flops in Trading Debut

    (Bloomberg) -- Vir Biotechnology Inc. fell almost 30% in its trading debut, adding to a series of IPO disappointments in an industry that was seen as at least partly immune to the ills afflicting this year’s newly public tech giants.San Francisco-based Vir sold 7.14 million shares Thursday for $20 each -- the bottom of its marketed range -- to raise $143 million. The shares opened Friday at $16.15 and fell from there, closing at $14.02 to give the company a market value of about $1.5 billion.Vir’s backers include SoftBank Vision Fund, Bill & Melinda Gates Foundation and Singapore’s Temasek Holdings Pte.Listing stumbles by high-profile companies including We Co., the parent company of WeWork, have cast a pale over IPOs, which had thrived this year in the U.S. despite trade tensions with China and stock market volatility.Shares of the 146 companies that have gone public in the U.S. this year are now down 0.2% based on a weighted average, according to data compiled by Bloomberg. The losers include the $8.1 billion listing by Uber Technologies Inc., whose shares are down 33% since its May IPO.Peloton, PostmatesThe two $1 billion-plus listings in September, SmileDirectClub Inc. and Peloton Interactive Inc., are down 52% and 23%, respectively. Postmates Inc., which submitted a confidential filing in February, is one of the companies that could delay its listing to 2020, people familiar with the matter have said.Of six biotech and biomedical IPOs that were set for the past two weeks, only one has lived up to expectations. Aprea Therapeutics Inc. priced its shares in the middle of its marketed range and has climbed about 27% from the offer price.BioNTech SE, German cancer treatment firm, downsized its offering Wednesday to raise $150 million and is now down 7.2% from its offer price.Bottom RangeLast week, Viela Bio Inc. and Frequency Therapeutics Inc. both priced their share sales at the bottom of their target ranges. While Viela is up 1.1%, Frequency Therapeutics has fallen 7.2% since then.ADC Therapeutics SA withdrew its IPO application last week citing “adverse market conditions.”Vir, founded in 2016, develop treatments for infectious diseases. Its most advanced treatment is for hepatitis B is in phase 2 clinical trial and it has a flu treatment in phase 1 trial, according to its prospectus.The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & CO., Cowen Inc. and Barclays Plc. The shares are trading on Nasdaq Global Select Market Friday under the symbol VIR.(Updates with closing share price in second paragraph)To contact the reporters on this story: Crystal Tse in New York at ctse44@bloomberg.net;Michael Hytha in San Francisco at mhytha@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Uber to Acquire Chile Grocery Startup Walmart Failed to Buy

    (Bloomberg) -- Uber Technologies Inc. plans to buy a majority stake in online grocer Cornershop, a deal designed to extend its geographic reach and bolster profits by bundling food delivery with rides.The move, which is subject to regulatory approval, could end uncertainty for the Santiago, Chile-based startup backed by Accel and other venture investors. Walmart Inc. announced its intention more than a year ago to purchase Cornershop outright for $225 million and re-sell the company to its Mexican subsidiary, only to have Mexican regulators oppose the move in June for antitrust reasons.Cornershop is the largest home delivery platform in Mexico and Chile. The app allows users to order groceries from a variety of stores such as Costco Wholesale Corp., Petco Holdings Inc., Walmart, bakeries and pharmacies, and have everything delivered at once, usually within 90 minutes. The items usually carry a higher price tag on top of the delivery fee. The four-year-old startup also operates in Peru and Canada. Terms of the deal weren’t disclosed.The arrangement could play a significant role in Uber’s strategy of layering more profitable services atop ride-sharing. Since the company’s disappointing initial public offering, the share price has dropped more than 30% and Chief Executive Officer Dara Khosrowshahi has sought to reassure investors that Uber is focused on turning a profit and continuing to grow.When Walmart attempted to buy Cornershop, analysts saw the purchase as a way for the retailer to increase its e-commerce presence with the help of an established app that brought a giant database of users and more importantly, its consumer patterns.“It’s already positioned, it knows the market well and it was going to accelerate this process for Walmart,” said Marisol Huerta, an analyst at Banco Ve Por Mas. “It’s the same strategy for Uber.”The acquisition by Uber means the San Francisco-based company will expand on its Eats offering with the ability to deliver not only prepared food from restaurants, but a wide set of groceries, Huerta said. “They’ll be entering a new market but they’ll already have a big data base and the structure to operate in it.”Uber says it expects the deal to close in early 2020. Cornershop will continue to operate under its current leadership, reporting to a board with majority Uber representation.“Whether it’s getting a ride, ordering food from your favorite restaurant, or soon, getting groceries delivered, we want Uber to be the operating system for your everyday life,” Khosrowshahi said in a statement announcing the deal.(Updates with comments from analyst in the sixth paragraph.)To contact the reporters on this story: Lizette Chapman in San Francisco at lchapman19@bloomberg.net;Andrea Navarro in Mexico City at anavarro30@bloomberg.netTo contact the editors responsible for this story: Mark Milian at mmilian@bloomberg.net, Molly Schuetz, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Uber Scrambles Into Groceries With Cornershop. Why?
    Bloomberg

    Uber Scrambles Into Groceries With Cornershop. Why?

    (Bloomberg Opinion) -- But why?That’s the question I keep asking as Uber Technologies Inc. makes the case that driving people around cities gives it a leg up on moving physical goods from place to place — restaurant food, freight by truck and groceries.Uber on Friday expanded those efforts by agreeing to buy a majority of Cornershop, which helps supermarkets, pharmacies and food retailers deliver their goods. It had operated mostly in Mexico and Chile before a recent expansion. Walmart Inc. agreed last year to buy Cornershop for $225 million, but Mexican regulators blocked the deal. Uber didn’t disclose its purchase price. Uber’s pitch is that having drivers drop people at work or transport them on date nights gives it an opportunity to also deliver burritos, bananas or movie theater popcorn to people’s homes. (That last one is a real thing, somehow.) Executives have said that restaurant delivery and experiments with other categories such as groceries give Uber couriers more work, particularly outside of the peak demand for car rides. This all sounds nice, until you think about it for more than five seconds.Every time Uber wants to enter a new delivery or logistics category, it needs to strike relationships with a new class of companies. Restaurants are a finicky bunch, and so are grocery store chains or companies that want to ship goods by truck.I have been stunned that Uber executives aren’t pressed to justify the strategic and financial efficiencies among their various businesses. On the consumer side of the equation, I may be more likely to order Uber Eats for dinner or grocery staples if I am used to taking an Uber car ride. But it’s not clear there is overlap on the supply side among ersatz taxi drivers, restaurants, grocery stores and other retailers. Does Uber’s expertise in matching drivers with riders really help the company build or hook into point-of-sale systems for restaurant orders and make sure owners get the support they need? Can it help a grocery store with inventory management, staffing changes or other complexities when adding home delivery to a conventional physical store? Cornershop’s built-up experience in that area won’t go away, but neither is it clear whether Uber’s ownership will help.Nor has Uber ever said whether the people driving passengers around are the same ones picking up restaurant orders or groceries for delivery. For one thing, in many big cities — including many of the ones that Cornershop serves — deliveries of food or groceries are done by motorbike or bicycle because that’s more efficient in traffic-clogged areas. Is that courier on a scooter delivering a sack of bread and milk in Mexico City one minute and then taking someone to the airport the next?And it is difficult to imagine how the particulars of Uber’s model will ever make for an efficient grocery delivery operation compared with what more specialized players will offer. Compare it, for example, with Ocado Group Plc, the British company that has been an early innovator in this space and will soon deploy its technology in the U.S. through a partnership with grocery behemoth Kroger Co.Ocado’s delivery vans are designed for ferrying fresh food efficiently. Vehicles have separate compartments for items that must be kept chilled. Totes are loaded into them in a specific order based on the driver’s route. The heaviest totes are placed in the middle racks within the van, making it easier for the driver to unload than if they had to be pulled down from a high shelf or hoisted off the floor.It defies logic that a fleet of contract workers at the helm of wildly different vehicles will be able to deliver grocery orders as productively. And that matters enormously for the profitability of these orders.The big conundrum for Uber is it must keep expanding, even if it doesn’t work. Growth has significantly slowed in Uber’s core business of rides on demand, which makes it essential for the company to find fresh, higher-growth businesses. (That may explain why Uber shares are trading higher on the Cornershop news.) This was also a company predicated on having a global reach and for which car rides were billed as the start of a sprawling empire to move people or goods in every imaginable way.Sprawl, growth and ambition are how Uber could justify a rapidly increasing valuation up to what investment bankers pitched as a possible valuation of $120 billion in an initial public offering. To put it mildly, Uber has not delivered. The share price has fallen about 33% since the IPO in May, and the stock is even below the level at which Uber sold shares in private transactions nearly five years ago. Ouch. The company has become a poster child for overinflated tech startups.A big reason Uber has been a flop for investors is the company has not made an effective case for its financial viability — even in its most established category of car rides. So it’s odd that Uber would make forays into additional logistically tricky and financially uncertain categories such as groceries without having a better story to tell. \--With assistance from Sarah Halzack.To contact the author of this story: Shira Ovide at sovide@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Uber’s Lee on Diversity in Silicon Valley, Uber’s Goals, Accountability
    Bloomberg

    Uber’s Lee on Diversity in Silicon Valley, Uber’s Goals, Accountability

    Oct.15 -- Bo Young Lee, chief diversity and inclusion officer at Uber, discusses how Silicon Valley has embraced diversity, what she’s doing to promote diversity at Uber, accountability and the buy-in from workers. She speaks exclusively on “Bloomberg Markets: Asia” from the sidelines of the Bloomberg Equality Summit in Mumbai. (Corrects to include full headline.)

  • Why Uber Is Buying a Majority Stake in Online Grocer Cornershop
    Bloomberg

    Why Uber Is Buying a Majority Stake in Online Grocer Cornershop

    Oct.11 -- Uber Technologies Inc. plans to buy a majority stake in online grocer Cornershop, a deal designed to extend its geographic reach and bolster profits by bundling food delivery with rides. Bloomberg's Lizette Chapman reports on "Bloomberg Technology."

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