Yahoo Finance Uber Falls on Fears Over Virus Strain in Africa, Belgium Blow
By Dhirendra Tripathi
Investing.com – Uber stock (NYSE:UBER) fell 6.3% on Friday as the emergence of a new variant of coronavirus in South Africa led to fears of fresh curbs on travel in countries.
Lockdown or not, people would be reluctant to use services of ride-hailing companies if the virus spreads.
Austria and Slovakia went into lockdowns last week and Germany, Europe’s largest economy is considering one, though the Covid-19 surge in those countries isn’t linked to the new variant.
The U.K. today suspended flights to and from six countries in Africa while the Europe Commission is proposing new travel rules to contain the spread of the virus.
Feeding into the negative sentiment for Uber stock was the company’s decision to halt operations in Brussels with effect from today.
The move comes after a Brussels court ruled Wednesday that a 2015 ban on private individuals offering taxi services also applies to professional drivers.
Uber said the decision will affect around 2,000 drivers. It urged the Belgian government to quickly change taxi service laws.
Today’s fall in the price comes even before the stock could recover from the blows of the last lockdown.
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