Uber’s great week translates into a rally in stock prices
Uber has underperformed since the start of the year, with numerous challenges in Europe affecting its stock price.
Uber CEO Says Company Has Recorded Best Week
Uber CEO Dara Khosrowshahi revealed earlier today that the company has just had its best week in terms of overall gross bookings. The ridesharing company has underperformed since the start of the year, but is now doing very well.
Khosrowshahi said, “Our overall mobility activity continues to move closer to pre-pandemic levels. We’re starting to get closer to call it the 90% mark, we’re not quite there. Last week was our best week, you know, after the pandemic. “
Gross bookings are Uber’s combined bookings for its ridesharing and delivery business. The CEO said ridesharing business was slowly picking up as economies returned to normal operations since the start of the pandemic.
The CEO also revealed that Uber is looking to sell its stakes in what it sees as non-strategic investments in other companies. The company is on the verge of selling its stakes in entities such as Chinese ridesharing company Didi Global.
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Rideshare companies and other travel companies have been negatively affected by the pandemic, as demand for their services declined during this time. However, as vaccines and restrictions have eased, consumers are traveling again and ridesharing services are in demand.
Uber grossed 1.64 billion on its platform in the current quarter, up 9% from the previous quarter and 39% from the fourth quarter of last year. The CEO’s comment pushed up the price of UBER.
At the time of going to press, UBER is trading at $ 37.51, up more than 5% since the US market opened earlier today. However, since the start of the year, the stock has underperformed, down more than 26% in the past twelve months.
Over the past month, Uber has underperformed due to its regulatory issues in Brussels, the Belgian capital. The carpooling platform no longer works in Brussels following the last court decision.