43.20 -0.10 (-0.23%)
After hours: 5:24PM EST
|Bid||43.07 x 3200|
|Ask||43.25 x 1000|
|Day's Range||42.03 - 43.42|
|52 Week Range||37.07 - 88.60|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct. 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||67.12|
(Bloomberg Opinion) -- Your mother probably told you never to get in a car with a stranger. The multibillion-dollar global ride-hailing industry depends on your ignoring her. If they want to earn that trust, though, companies need to rethink the tradeoff they’ve long made between safety and cost.Around the world, passengers are now hailing more than 10.5 billion rides a year. Not surprisingly, some have ended in tragedy. Uber Technologies Inc. came under fire in India after a 26-year-old woman was raped by one of its drivers in 2014, and local rival Ola has faced a similar backlash. In the U.S., Lyft Inc. has been sued by multiple women who say drivers sexually assaulted them.Last year, within the span of three months, two female passengers were murdered by drivers of China’s ride-sharing company, Didi Chuxing Inc. Didi’s Hitch carpooling service once was marketed almost as a cross between Uber and Tinder: a taxi service that let drivers and passengers rate each other by appearance. Didi halted Hitch in August 2018 after an outpouring of anger from state media, regulators and China’s version of deleteuber.Last week, Didi announced plans to restart Hitch on a trial basis in seven Chinese cities by the end of the month. The decision follows a “comprehensive safety review and product revamp,” as well as the introduction of a new women’s safety program that includes better “risk analysis” and an updated in-app security assistant. Didi plans to spend 2 billion yuan ($285.5 million) on safety measures this year, including more frequent use of facial-recognition technology — to ensure drivers are who they say they are — and a deeper review of abnormal driving patterns, as well as more regular safety tests for drivers.But the key to the Hitch relaunch are new restrictions on the program. The service will be limited to trips under 50 kilometers (31 miles) and women can only ride between 5 a.m. and 8 p.m. By contrast, men can keep riding until 11 p.m.While the company’s intentions are good, this is no solution. A sophisticated analysis of high-risk scenarios won’t help you if you’re stuck in the backseat within an inch of your life. And to assume that a woman will only be raped and murdered between the hours of 8 p.m. and 5 a.m. more than 30 miles from her pickup point seems a bit naïve.What the ride-hailing industry in China and elsewhere really needs to do is reexamine who’s allowed to drive in the first place. It’s hard to say whether the measures Didi is now implementing would have screened out Zhong Yuan, the 28-year-old Hitch driver who was executed in August for murdering his 20-year-old passenger. After passing background checks and providing documentation, you can still become a Didi driver in 10 days or less.Instead, companies should be raising the barriers to entry so they’re hiring fewer, better drivers. And if they won’t, governments should step in. In Malaysia, regulators now require aspiring drivers to pass written exams and health checks, and to register for specific permits. Roughly a third of applicants have failed the exam thus far, Transport Minister Anthony Loke said last month, and more than 20% of Grab drivers have reportedly quit to avoid complying with the stricter regulations.Singapore imposed new rules earlier this year to bring ride-hailing companies closer in line with taxi operators. The regulations were proposed less than a week after my Bloomberg News colleague Yoolim Lee wrote about a Grab accident that left her with a broken neck and at risk of stroke. She estimated that, around the time of the incident, nearly half of private-hire drivers in the city didn't have the proper license and shouldn't have been driving. While fewer drivers doesn’t necessarily mean safer drivers, a steeper commitment at least means they have a lot more at stake to protect their livelihoods.The genius of the gig economy is the ability to make money from underutilized, ubiquitous skills. Yet the model may have been taken too far. Just because you can make an omelet doesn’t mean you should run a diner. So why should you drive professionally just because you have a license?Shrinking the supply of drivers will obviously make rides more expensive. But it’s worth judging the prospect of higher prices against the long cycle of the internet economy. The Web has made everything from academic research to air travel cheaper and easier to access. At the same time, quality goods and services can’t be free forever: We’ve seen this in the news business, where websites that once offered unfettered access to their journalism (including Bloomberg.com) have implemented paywalls. If fewer drivers means safer rides, that’s a price most people should be willing to pay. To contact the author of this story: Rachel Rosenthal at email@example.comTo contact the editor responsible for this story: Nisid Hajari at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Rachel Rosenthal is an editor with Bloomberg Opinion. Previously, she was a markets reporter and editor at the Wall Street Journal in Hong Kong. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The latest Tesla earnings release has driven it into one of the strongest and fastest rallies in the stock's history, and it doesn't seem to be slowing. TLSA could be well on its way to surpassing its all-time high.
Travelers passing through Los Angeles International Airport, the second busiest airport in the United States, have routinely expressed outrage over long wait times for ride-hailing services like Lyft and Uber. It appears things are finally improving.
(Bloomberg Opinion) -- Masayoshi Son, the founder of SoftBank Group Corp., has joined the new religion for technology investing.On Wednesday, Son disclosed SoftBank’s third-quarter investment losses from bets on WeWork, Uber Technologies Inc. and other stakes. He also talked about his fealty to corporate cash flow and putting appropriate guardrails on young companies. Son displayed something that seemed like humility — in actuality his typical bravado with some humble words mixed in. Son also said the strategy for SoftBank’s giant tech investment fund has not changed fundamentally, and he disputed the characterization of its recent financial rescue of WeWork as a bailout. It most definitely was a bailout.This was quite a change, at least in tone, for a man who wanted companies to be more “crazy” and more than anyone else is responsible for the recent hyperinflation of startup valuations and founders’ egos. And it shows the pressure Son is under to deliver financial returns for Vision Fund investors and get cash for another one. But Son’s pivot and the circumstances around it also call into question the very foundation of company-building in the last decade.Uber executives, for example, started their third-quarter earnings call this week by discussing the company’s efforts to balance revenue growth with a move toward profitability. If someone had told me at the beginning of the year that Uber would be talking about temperance, I don’t think I would have believed it. Temperance at Uber is relative, to be sure. This year, Uber has bled 25 cents in cash for each dollar of revenue.Contrast Uber’s tone with that of Peloton Interactive Inc., the maker of an indoor bicycle and virtual fitness classes, which has defiantly stuck with a strategy of pouring money into international expansion, heavy marketing to land new customers and other projects to grow faster. It could work, but it’s an approach that has fallen out of fashion. Investors don’t truly buy either company’s strategy. Peloton’s stock price has fallen 22% from its September initial public offering. Uber shares have declined 40% from their IPO price in May and hit a record low on Wednesday as restrictions lifted on the ability of private investors and employees to sell their shares. Most other highly valued startups haven’t done much better as public companies. I suspect share declines for Uber and rival Lyft Inc. would be worse if they hadn’t responded to stock investors’ sudden zeal for financial prudence from young companies. Still, investors’ and companies’ shift to worshiping at the altar of profits might not last. It was only a few years ago that investors started to become anxious about the vast sums of money flying into unprofitable startups. The bubble didn’t burst, but air deflated a bit from the balloon.Investments in startups pulled back for a while, and some young companies died or still haven’t recovered their valuation from those pre-2016 heady times. But then SoftBank unveiled its nearly $100 billion tech investment fund, and it was off to the races again at a speed that made the earlier mania seem sober.The latest turn against fast-growing but possibly unsustainable young companies isn’t only about the specific struggles of WeWork and Uber or SoftBank’s bazooka of startup cash. Stresses on those companies call into question the entire model of funneling oodles of cash into a company to help it grow very big very fast.Of the more than $23 billion in stock that Uber has sold during its lifetime, more than 90% traded at share prices higher than the current one. And for a good chunk of the rest, investors could have done nearly as well in a plain-vanilla equity index fund. This is the most successful company of the uber-unicorn era, and it’s been a poor investment for nearly everyone.This could all turn around, of course. As every young tech company with a sagging stock price likes to say, Facebook Inc.’s share price stumbled in its first 15 months as a public company before a rebound turned the company into one of the best stock investments of this decade.The problem with Uber and other growth companies is they couldn’t exist without the tidal wave of cash available for ambitious startups in the last decade. And yet it’s still not clear how much is a mirage.It’s possible that the natural state of Uber and other highflying unicorns is a healthy business whose economics don’t look fundamentally different from the incumbent industries they’re trying to bust up. That’s hardly the ambitious vision behind the Vision Fund.A version of this column originally appeared in Bloomberg’s Fully Charged technology newsletter. You can sign up here.To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis 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.
Lyft Pink membership, which costs $19.99 a month, provides a 15% discount on ride-hailing trips and 90 minutes of complimentary bike-share and electric scooter rides in cities with availability. The offer is targeted at people who are already considering giving up their car, said Lyft's senior director for transportation policy, Lilly Shoup. Lyft plans to expand the programme to other cities.
Companies that went public this year and did well in terms of price performance did so on the back of solid financials, positive cash flows and growing revenues.
Rakuten Inc's quarterly operating profit was almost wiped out in the three months ended September as investment in its e-commerce and mobile units weighed on profits, with the value of its bet on ride-hailing firm Lyft also sliding further. Rakuten's billionaire founder and Chief Executive Hiroshi Mikitani is under pressure on multiple fronts as a slide in his tech bets compounds pain from squeezed margins at the firm's e-commerce business and a delay to its mobile market entry. The Japanese firm booked a 103 billion yen ($945 million) writedown on its 11% stake in Lyft Inc , as bets on the ride-hailing industry by Rakuten and its rival SoftBank Group Corp , the largest shareholder in Uber Technologies , sour amid a market sell-off of money-losing startups.
(Bloomberg) -- Lyft Inc. held talks with London’s main transport regulator about making an entrée into the European city through its bike-share program this summer -- a move that, had it happened, would have marked a significant departure for the ride-hailing company that has long focused only on the U.S. and Canada.In June, Lyft approached Transport for London about allowing its users access to the city’s bike-share system, called Santander Cycles. The talks fizzled after TfL ruled out a potential tie-up, according to information obtained in a Freedom of Information request by Bloomberg. TfL credited the success of its own app as a reason not to seek third-party partnerships.Although it didn’t come to fruition, the effort by Lyft sheds light on a potential push into international cities by the San Francisco-based company, which has lost more than 40% in the public markets since its initial public offering in March.“While we currently have no plans to launch rideshare services in London, we regularly meet with cities around the world to discuss urban transportation,” a spokeswoman for Lyft wrote in an email.Any entry into Londonwould pit Lyft against its major rival Uber Technologies Inc., which has long operated in the city and is currently working to improve its rocky relationship with TfL. The regulator in September granted Uber a two-month extension to operate in London.“We haven’t rushed to do international beyond Canada in a big way, and those are all very thoughtful decisions,” said John Zimmer, co-founder and president of Lyft, at a conference in September. “We’re setting the stage to be able to have to more easily go to additional markets. We have not made a final decision on when and how we will do that.”Lyft has kept up regular contact with TfL since 2016. Most recently its executives -- including Julia Haywood, a vice president -- met Michael Hurwitz, director of transport innovation at TfL, and Gareth Powell, managing director of surface transport, in July.The meeting covered the “status of the transport market in London and an update on the range of Lyft’s business activities, from ride-hailing to bike-rental,” according to TfL. Lyft representatives also held regular meetings with TfL counterparts to discuss data-sharing agreements and the implementation of payments software, the information request revealed.“We have considered the possibility of enabling people to hire bikes directly from third party apps,” Danny Price, TfL’s general manager of sponsored services, wrote in an email to Bloomberg. “But we have ruled this out at this time due to the popularity of hires made by contactless payment and our own app.”Lyft acquired an existing relationship with TfL via its takeover of bike-sharing company Motivate in mid-2018. Motivate owns 8D Technologies, which provides point-of-sale products for bike-share programs, including TfL’s Santander Cycles. Over the past year, Lyft has increased user access to shared bikes and scooters. Via the acquisition of Motivate, it acquired New York’s Citi Bike system, which is now available via its app.Lyft has also been building its presence in Europe with a new location and acquisitions. Early last year, the company opened its first European office in Munich, home to companies like BMW AG and Siemens AG. In October of last year, the company bought Blue Vision Labs, a London-based augmented reality startup.To contact the reporter on this story: Giles Turner in London at email@example.comTo contact the editors responsible for this story: Mark Milian at firstname.lastname@example.org, Anne VanderMey, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Uber’s stock sank to a record low Wednesday, as early investors and employees took advantage of the first opportunity they had to unload the stock since the ride-hailing giant’s disastrous IPO six months ago.
(Bloomberg) -- Multiple large stakes in Uber Technologies Inc. changed hands on Wednesday, pushing the shares down to an all-time low, as post-IPO selling restrictions for early investors and insiders lifted.The sell-off has placed Uber among the top most actively traded stocks in the U.S. by value on Wednesday. Uber shares worth over $2.2 billion have traded as of 12:25 p.m., according to Bloomberg data. The stock dropped as much as 8.7% in New York, touching a new all-time low of $25.58.“Part of the problem with why there is so much pressure, is that Uber and many of its IPO peers this year had stayed private longer,” Wedbush analyst Ygal Arounian said in an interview. Arounian added that it meant there were more shares issued in the private market, and that there are many more shareholders who can sell stock now. “There’s a simple supply and demand element to it,” the analyst said.Wedbush had earlier estimated about 763 million shares will hit the market upon the lockup expiry.The expiration of the IPO lockup period has been a much-dreaded event for Uber investors, also since positive news from the company has been scarce. The latest quarterly results out earlier this week failed to lift that gloom. Analysts said the company needed to show consistent and steady growth in the number of riders who use its services. It also needs to show a stable road to future profits, as well as provide more clarity around regulatory roadblocks in order for market sentiment to start turning in its favor. The stock’s disastrous run since the IPO has weighed heavily on its top investor SoftBank Group, which holds a 13% stake in the company, according to Bloomberg data. Earlier on Wednesday, the Japanese investment firm reported its first quarterly operating loss in 14 years, after writing down the value of a string of marquee investments that included Uber.According to Bloomberg data, a block of 7.75 million shares crossed at 9:30 a.m. at a price of $26.02. Also, Goldman Sachs sold about 2 million shares on behalf of an unknown selling holder at $26.90 each, a 4.0% discount to Tuesday’s closing price. Shares were offered at $26.75 to $27.00.Goldman Sachs held a 4.1% stake in Uber, according to Bloomberg data as of June, putting it among the top 10 holders.Shares in 2019’s largest U.S. IPO are now down nearly 40% since the May debut. Shares of peer Lyft Inc. are down 24% over the same period. Wall Street, however, is still optimistic. About 25 analysts recommend buying the stock, while 12 suggest holding and only one advocates selling Uber shares, according to Bloomberg data.(Updates share move, adds analyst comments, more block trade detail, context.)\--With assistance from Joshua Fineman.To contact the reporters on this story: Drew Singer in New York at email@example.com;Esha Dey in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Courtney DentchFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- When I first met Silicon Valley lawyer David Estrada in 2014, he was an executive at Lyft Inc. who was tussling with New York City regulators. Lyft wanted to allow its drivers to ferry passengers around the city without special licenses. He lost that battle but won the war, helping to persuade dozens of states and countries to change their laws and usher in the age of ride-hailing.It turns out that Estrada’s two years at Lyft were just one part of a 15-year slalom through some of Silicon Valley’s most disruptive companies. He had previously worked at Google X, crafting the first autonomous vehicle legislation in states like California, Florida and Nevada. After Lyft, he moved to Kitty Hawk, Larry Page’s secretive flying car company, and then became the head of legal and policy at Bird Rides Inc., nudging more than 100 U.S. cities and several countries to accept (though not necessarily embrace) street-side electric scooter rentals.Now Estrada is taking on a new role at Nuro Inc., a Mountain View, California-based self-driving car startup founded by two of his former Google colleagues and backed by nearly $1 billion from SoftBank Group Corp.’s Vision Fund. Nuro envisions autonomous cars not only without drivers but without passengers, either. Its goal is to create lightweight vehicles designed for delivering packages, groceries and meals to people’s homes.“My hope is that I can help Nuro achieve the first commercial success with autonomous vehicles, which is really what I set out to do when I started on this path back at Google,” says Estrada, who must first convince regulators and citizens who will likely be skeptical of another wave of Silicon Valley-style disruption in their communities.Nuro completed a pilot program to deliver groceries this year in Scottsdale, Arizona. Next year in Houston, it plans to start delivering food from Kroger Co. and Domino’s Pizza Inc. via an upgraded electric vehicle prototype that can travel up to 25 miles per hour.Estrada will eventually have to navigate a tangle of state and federal authorities. States license individual drivers and oversee their roads and highways, while the National Highway Traffic Safety Administration regulates federal motor vehicle safety standards. The Feds must be convinced to accommodate an entirely new class of self-driving delivery vehicles that theoretically don’t need steering wheels, seats, seat belts, windshield wipers or rear-view mirrors. Nuro’s application for an exemption from safety standards for its vehicles is pending.Estrada plays up the safety of Nuro cars, which are designed to tolerate damage to its cargo in collisions (what’s a few broken eggs in a crash?) while minimizing the impact to other vehicles, pedestrians and pets.He’ll face other concerns as well. In addition to further congesting already clogged city streets, driverless delivery vehicles threaten to put more than 400,000 delivery drivers in the U.S. out of business.Estrada argues that Nuro cars won’t supplant existing delivery people but expand the overall market while creating more jobs inside supermarkets and restaurants and lowering the cost of home delivery services like DoorDash and UberEats. Of course, he’ll have to deliver that message at a time when Amazon.com Inc. is trying to eliminate cashier jobs with its Go store, and chains like McDonald’s Corp. are working on automating functions like the drive-through.Which is why Silicon Valley companies pay him the big bucks. Nuro co-founder and President Dave Ferguson acknowledges the formidable regulatory and PR challenges and says he hopes Estrada can “push us over the finish line.”This article also ran in Bloomberg Technology’s Fully Charged newsletter. Sign up here.And here’s what you need to know in global technology newsUber braces. Many early investors and employees can sell their stock for the first time on Wednesday.FCC inquires. The agency want to know if equipment from Huawei has been installed near sensitive military bases.Match Group dumped. Shares plummeted after the online dating giant disappointed investors with a lackluster financial report.To contact the author of this story: Brad Stone in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Uber Technologies, Inc. may have done the right thing by offering guidance for positive Ebitda for the full year in 2021, but there remains a serious negative catalyst on the immediate horizon: the expiration of a shareholder lockup on Wednesday. That's according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar TV about Uber's […]
U.S. stock indexes hit new highs amid U.S.-China trade war progress. Quarterly earnings results, including Uber. The episode then closes with a look at why The Boston Beer Company (SAM) is a Zacks Rank 1 (Strong Buy) stock...
(Bloomberg) -- Peloton Interactive Inc. tumbled after frustrating investors with a focus on growth rather than profitability.“For us, profitability is a managed outcome,” Chief Executive Officer John Foley said on a call with analysts. “I believe if we pulled back on growth, we could be profitable tomorrow, but that is not what the board and the leadership of Peloton believes we should do.”The stock sank following the call, after being up more than 7% in early trading when the earnings were published.Wall Street is increasingly looking for realistic paths to profitability over growth-at-all-costs. Investors have shunned other IPOs this year that hewed to that model, including Uber Technologies Inc., Lyft Inc. and Slack Technologies Inc., which have all dropped at least 15% since their IPOs.New York-based Peloton, which sells a stationary bike, a treadmill and a subscription-based app for live and on-demand classes, said its loss narrowed in the first quarter to $49.8 million, or $1.29 a share, from $54.5 million, or $2.18. That beat analysts’ prediction for a loss of $114 million. But earnings before interest, tax, depreciation and amortization aren’t expected to be positive until 2023.After pricing shares at $29 in September, Peloton has fallen as low as $21.08. The stock was trading at $22.78 at 10:47 a.m. in New York, down 7.4%.In an interview, Foley described the market rout after the IPO as a “perfect storm of being lopped into all kinds of buckets that were unfortunate and wrong.” While various factors, from fitness fads to an IPO hangover and the overall economic environment, conspired against them, Foley said he had no regrets on the timing of the stock listing. “We’re all playing for the long game,” he said in an interview.Sales will be $1.45 billion to $1.5 billion in the year ending in June, Peloton said Tuesday in a statement. Analysts, on average, projected $1.39 billion, according to data compiled by Bloomberg. First-quarter revenue more than doubled from a year earlier to $228 million, compared with estimates of $199.4 million.Founded in 2012, the company describes itself as the “largest interactive fitness platform” in the world. It added 52,000 connected fitness subscribers in the first quarter to almost 563,000, slower growth than what it had experienced in the previous quarters, though the three-month period ended Sept. 30 is historically slow heading into the holiday season, the company said. Peloton, in a presentation to investors, said the fiscal second and third quarters are the strongest for revenue and subscriber growth “when we benefit from holiday sales, New Year’s resolutions and colder weather.”Peloton also has an app that shares its exercise programming with users who don’t own the hardware, but are willing to pay a monthly subscription fee for classes, which include yoga, meditation and strength training.Foley said sales in Canada and the U.K. “are ahead of expectations” and also “dramatically further ahead than at the similar time in the U.S.” Peloton will launch in Germany on Nov. 20, giving it a presence in the three largest fitness markets in the world, according to the company. Germany will also mark the first non-English offering. Sales and marketing expenses for these new areas and a continued push in the U.S. is a key reason why the firm is still operating at a loss.Peloton quietly acquired a Silicon Valley engineering firm, Gossamer Engineering, earlier this year to help it ramp up in-house development of products, according to people familiar with the transaction.The company launched a 30-day in-home free trial in early September, which could help with New Year’s fitness goals looming, JPMorgan Chase analyst Doug Anmuth wrote in a recent note to investors. The company is also planning to open new studios in New York and London, which could boost the stock, according to MKM analyst Rohit Kulkarni. On the call, the firm said that this will impact member churn in the coming quarters, since users that decided to send the hardware back within the 30-days will be counted.(Updates with comments from analyst in fourth paragraph.)To contact the reporter on this story: Julie Verhage in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Mark Milian at email@example.com, Andrew Pollack, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.