About Uber Technologies Inc
Uber shares went live on the stock market since beginning of May 2019. Short Selling are worries about the current valuation if the ride sharing numbers goes down significantly in 2020. However, there are still many countries where Uber are still not available and might have a great upside.- Uber didn’t manage to merge with Grubhub due to an antitrust investigation. Sometimes, “big” can be a problem.
Potential risks to be aware of with this company/stock
– The quarterly reports for Uber will be watched closely by analysts, since ride-sharing gone down drastically in many countries around the world and many even changed their behaviour following Covid-19. Today, many are rather driving their own car, walking, cycling or taking motorbike to get around due to the increased infection risks Uber drivers been having.
– Might be forced to treat drivers as employees instead of independent contractors, which could add extra costs to the business, while making it less flexible.
– Uber’s surge pricing during busy times made many customers either stop using it, since normal taxi is cheaper in many countries, or start to get very negative towards Uber.
– Sexual harassment from Uber drivers created #deleteuber campaign and many female passengers got worried to ride with the company.
– Self-driving cars could both be an opportunity and high risk for Uber, according to the company themselves.
– Pick-ups and drop-offs at airports are getting harder and costlier, making some customers opting for other transport modes.+ Still not available in many countries with monopoly.
– Several Uber executives are selling shares in the company.
– Do UBER still own Uber Eats? Yes, they do, except in some countries such as India sold the local, Indian Uber Eats to Zomato a privately hold company. Uber Technologies Inc received a 9.9% stake in Zomato when they sold the Indian Uber Eats in January 2020.
– Uber rides cannot go in taxi lanes in most countries, which add extra time to your journey when there is traffic, compared to going with a real taxi driver.
– Many competing apps such as Gett in the UK, Israel and Russia are usually quicker (since allowed in taxi lanes).
– Lots of alternative app based ride sharing sites are cheaper, such as Didi in China and Mexico, Ola Cabs in India and Kapten in Portugal and France are way cheaper.
Potential upsides beneficial to the company/stock
+ Uber done a great job informing clients about Coronavirus.
+ Excellent brand name, easy to remember.
+ Still don’t have many of the top-end restaurants on Uber eat.
+ Lots of potential for Uber bicycles in more cities.
+ Uber Chopper can also roll out in many more locations with time, including London, Stockholm and Barcelona.
+ Cashless rides are simple and convenient. You never give any cash to the drivers. Just order from the app.
+ The app might be the biggest assets of the company, apart from the memorable name.
Broker recommendations for Uber Technologies
The Uber Technologies, Inc. stock is rated at 1.22619 (on a scale 1-3, where 1 is ‘strong buy‘ and 3 is ‘strong sell‘) from Tuesday 21 July, 2020 by a total of 42 brokers. This means that the consensus of the 42 different brokers is leaning toward to buy/moderate buy.
1 (2.38%) Underweight
0 (0%) Hold
6 (14.29%) Overweight
3 (7.14%) Buy
Tuesday, 4 August 2020, 08:05:57
Rideshare companies have restricted use in Victoria.
— Business Insider Australia
Tuesday, 4 August 2020, 07:13:37
San Francisco, Aug 4 (IANS) The Florida-based juvenile who is the mastermind of the mega Twitter Bitcoin hack owns more than $3 million (over Rs 22.5 crore) worth of Bitcoin, the media reported. Graham Ivan Clark, 17, has been charged, along with two more young individuals, by the US Department of Justice with hacking Twitter last month that compromised the accounts of 130 high-profile celebrities, politicians and businesses like Barack Obama, Joe Biden, Bill Gates, Jeff Bezos, Elon Musk, Apple and Uber. According to Tampa Bay Times, the Tampa teen made his first court appearance over the weekend and described in “greater detail how they say he pulled it off”. Clark appeared on a video screen in a small courtroom in front of County Judge Joelle Ann Ober. Under Florida law, it took 10 per cent of the $750,000 bail set — $72,500 — to free Clark pending trial. He faces state charges because he is a juvenile, according to the federal authorities. Clark hired 22-year-old Nima Fazeli of Orlando and 19-year-old Mason Sheppard of the UK “as proxies” to “manipulate” Twitter employees and access to the company’s system. “Prosecutors sought bail at $1 million per charge for each of Clark’s 30 counts and argued Florida case law says he must prove the money used to post his bail was legitimately obtained”. “Because, based upon the conduct of this defendant, I believe it’s appropriate to assume that every single penny that this defendant has access to is by ill-gotten gains,” the prosecutor was quoted as saying. “And we’re talking about millions of dollars.” Clark faces 17 counts of communications fraud, 11 counts of fraudulent use of personal information and one count each of organised fraud.
Tuesday, 4 August 2020, 06:02:16
San Francisco, Aug 4 (IANS) Twitter has disclosed that it may end up paying up to $250 million as fine to the US Federal Trade Commission (FTC) in a probe pertaining to improper use of users phone numbers and email addresses for advertising gains. On July 28, the company received a draft complaint from the FTC alleging violations of Twitter’s 2011 consent order with the FTC not to mislead consumers about how it protects their personal information. “The allegations relate to the Company’s use of phone number and/or email address data provided for safety and security purposes for targeted advertising during periods between 2013 and 2019,” Twitter said its second quarter financial filing on Monday. “The company estimates that the range of probable loss in this matter is $150 million to $250 million and has recorded an accrual of $150 million,” said Twitter. “The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome,” the company added.
Uber earnings: ‘A tale of two businesses’ as Postmates comes on board
Tuesday, 4 August 2020, 04:43:00
The COVID-19 crisis has hit ride-hailing hard, but food delivery has become a lifeline for many. Can gains for UberEats overshadow the decline of Uber’s core…
US judge denies claims Uber won price-fixing suit because arbitrator was scared
Tuesday, 4 August 2020, 01:05:26
A U.S. judge on Monday denied a request by an Uber Technologies Inc customer to overturn an arbitration win for the company in a price-fixing case over claims the arbitrator only ruled in Uber’s favor because he was scared.
— Channel NewsAsia