|Bid||56.37 x 800|
|Ask||56.65 x 1100|
|Day's range||55.91 - 57.13|
|52-week range||29.35 - 80.25|
|Beta (5Y monthly)||1.20|
|PE ratio (TTM)||N/A|
|Earnings date||28 Jul 2020 - 03 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||44.14|
(Bloomberg Opinion) -- Alarmed at high fees, restaurant owners are demanding that delivery services such as Grubhub Inc. cut them a break during the pandemic. Unfortunately, politicians are listening.New York City imposed price controls on the apps this week, prohibiting them from charging delivery fees of more than 15%. San Francisco, Seattle and Washington have made similar interventions. Many other cities will be tempted to follow suit. They shouldn’t.Higher prices for delivery reflect rising demand in a period when most of the country is stuck at home. If restaurants find these fees too burdensome, they can hire their own delivery workers or switch to another app — and in New York City, there are at least a dozen, so there’s no lack of competition. It’s true that Grubhub and Uber Eats, two of the biggest delivery apps, are contemplating a merger. But it’s hard to argue that either has engaged in predatory pricing when neither makes any money. Uber Eats, in fact, is losing about $300 million a quarter.Which suggests a bigger problem with price caps. Although delivery apps have proved quite popular, no one has devised a decent business model for them. At the moment, they’re kept afloat thanks to lavish subsidies from investors. That means consumers get deliveries for much less than they’d otherwise have to pay, and restaurants, far from being scammed, are in fact paying significantly below what the market would demand absent such support.This may or may not be a good bet by investors, but in the meantime the arrangement creates substantial benefits. Restaurants can connect with a much larger customer base, offload the hassles of delivery and market themselves efficiently without having to add staff. Apps can compete for market share with attractive prices. And customers can choose from an astonishing variety of cuisines while having their orders dropped off for a relative pittance.Price controls won’t improve this model. To the contrary, they’ll induce apps to pass along the added costs to customers, thereby reducing demand for the very restaurants they’re intended to help, or to narrow their coverage areas to only the most profitable addresses. More customers will order food for pickup to avoid the fees, increasing the risk to public health. And investors may tire all the sooner of subsidizing loss-making services whose potential revenue is artificially capped.Rather than attempting to re-engineer the delivery economy, city governments should be laying the groundwork so that restaurants and other small businesses can safely reopen, while Congress should focus on getting direct aid to these companies, in particular by fixing some of the perverse incentives created by previous relief measures.The unfortunate fact is that restaurants are in for an extended period of turmoil. Policy makers should do all they can to help them out — and avoid adding to the damage along the way.Editorials are written by the Bloomberg Opinion editorial board.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Ron Parise has spent about 50 hours a week for the last two years on the roads of Cape Coral, Florida, shuttling tourists and snowbirds between their rentals and the airport for Uber Technologies Inc. and Lyft Inc. All that came to a sudden stop in late March, when the arrivals gates went quiet and Parise’s wife insisted he stay home to avoid exposing himself to the coronavirus.Parise, 73, used his newfound free time to apply for any public assistance program for which he thought he might qualify. Nothing came through until early this month, when he received $11,500. It’s a small-business loan forgivable under certain conditions, part of the $659 billion Paycheck Protection Program, which is designed to encourage companies to keep paying employees during the pandemic. Parise believes he qualifies because he owns a one-man business to support his job driving.The state of Florida initially told Parise he wasn’t eligible for unemployment insurance, but he recently began receiving checks under the federal Pandemic Unemployment Assistance program, which gives relief to independent contractors who have been impacted by the pandemic. This created an ethical dilemma for Parise, and perhaps a legal one, too. The small-business money is supposed to keep bosses like Parise from laying off workers— in this case, just Parise. Unemployment benefits are intended for people who have lost their jobs. “I don’t want to seem like I’m double dipping,” he said. “I’m happy to stay home and collect the government money if I can.” Parise said he hasn’t decided what to do but is leaning toward taking taking both and paying back the loan before it comes due in two years.While Uber considers its drivers to be independent contractors, some like Parise set up small businesses to manage their income from driving. The designation helps minimize personal and tax liabilities and for Parise, validates his status as an entrepreneur in his own right. “I’m more of an independent business person,” he said. “I hire Uber to send me customers.”Deciphering the rules around the government’s financial-assistance programs is a widespread challenge, and ride-hailing drivers face a particularly complicated route. The pandemic has left most of them unable to find enough work to get by. Meanwhile, Uber and Lyft haven’t altered their stance that drivers are independent contractors, not employees, disqualifying them from unemployment insurance in most states. The companies have directed drivers toward at least three alternatives, including the two Parise applied for.Congress created Pandemic Unemployment Assistance to help provide financial relief to workers normally ineligible for unemployment benefits, and Uber successfully lobbied for its drivers to be included. States manage the federally funded program, and implementation has been patchy at best. Many drivers have yet to receive money or even confirmation they’ll get it eventually, said Harry Campbell, who runs a popular website for drivers called the Rideshare Guy. “Some people are getting unemployment,” he said. “Some aren’t.”The financial-aid programs for small businesses have been similarly inconsistent. Tied up in the practical questions of where drivers can turn for help is an unresolved fight over whether Uber and Lyft’s workers should be considered employees of the companies. Many drivers, along with labor groups and Democratic public officials, have said the companies are cheating drivers out of benefits and offloading the costs onto taxpayers. “They are using the moment to crystallize the fact that, in their view, these workers should not have the benefit of employee status,” said Brian Chen, a staff attorney at the National Employment Law Project, a worker advocacy group. Ride-hailing companies oppose efforts by drivers to access traditional unemployment benefits from states, which are financed through payroll taxes. Uber and Lyft are contesting a California law intended to classify workers like their drivers as employees, and the state recently sued them in response. Most drivers, said Chen, would receive more generous benefits from state programs, an assertion Uber contests. “Congress fully funded pandemic unemployment assistance for gig workers so that every state, many of which face historic deficits, could give these workers immediate financial support at no cost to their own state funds,” said Harry Hartfield, a spokesman for Uber.Lyft and Uber would have been on the hook for $413 million in unemployment insurance costs over the last five years in California alone, according to a study published this month by the University of California, Berkeley’s Institute for Research and Labor. A similar analysis by officials in New Jersey said Uber would have faced a bill of $530 million for unemployment and disability from 2014 to 2018. Tally up the 48 other states, and you’re looking at a significant additional cost for two companies that have never been profitable.“I don’t want to seem like I’m double dipping”New York courts have ruled multiple times in favor of Uber drivers seeking unemployment benefits in the last year, but only after a lengthy process that’s onerous for both applicants and the state, said Nicole Salk, a senior staff attorney with Legal Services NYC who has represented several drivers in such cases. “It causes problems for the whole system.” she said.On Monday, four drivers for Uber and Lyft and a worker advocacy group sued Governor Andrew Cuomo and the New York Labor Department in federal court, claiming the state failed to pay unemployment benefits promptly. Jack Sterne, a spokesman for the governor, said New York is ahead of other states in its response to the jobs crisis and is processing more than 100,000 applications a week for the federal unemployment program. “During this pandemic emergency, we have been moving heaven and earth to get every single unemployed New Yorker their benefits as quickly as possible—including Uber and Lyft drivers who are treated no different than any other worker,” Sterne wrote in an emailed statement.Amara Sanogo, a driver in the Bronx, is living off his credit cards and helping his three children with their Zoom video curriculum as he waits for a response from the state about whether he qualifies for benefits. When he applied nearly two months ago, Sanogo set up an online account on a state website and was told he’d get updates there. “Every day I check that account,” he said. “There are no more messages.” New York’s Labor Department is now advising gig economy workers to apply to the federal program instead of the state’s.For drivers who set up a business to manage their Uber income, there are signs of significant interest in the small-business programs. Ron Walter, a driver in the Denver area who primarily works for Uber and Grubhub Inc., wrote a blog post about his experience applying for a PPP loan, which companies don’t need to pay back as long as they keep paying employees and adhere to other guidelines. Walter’s blog post contained a link encouraging other drivers to apply through a website called Womply.com, which charges lenders a commission for sending them leads. Dozens of drivers clicked through the link and filled out applications, according to data Walter received from Womply that was reviewed by Bloomberg.Walter got a loan of $4,800 and anticipates he’ll have to pay it back. He didn’t apply for other government programs, he said, because it didn’t feel right. Since Walter mostly delivers food, he said he’s actually doing pretty well. He can squeeze more deliveries into every hour and gets paid more. “Traffic is a lot better, and parking is a lot better because everybody is staying home,” he said. But as the economy worsens, Walter worries demand is not going to last. At some point, he said, “people run out of money.”(Updates with lawsuit in the 12th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
As COVID-19 continues to transform our economic reality, two megatrends are converging to create a once in a lifetime investment opportunity
Uber finished the quarter with an adjusted EBITDA loss of $612 million, which is expected to be worse in the second quarter, given that shutdowns in most areas didn't begin until March. Last year, Uber had set a goal of reaching adjusted EBITDA profitability by the fourth quarter of 2020, but the company pushed that back to 2021 due to the pandemic. Despite the recent setbacks, CEO Dara Khosrowshahi and his team remain squarely focused on the bottom line.
With its core ride-hailing business plummeting amid the pandemic, Uber is eyeing meal delivery and electric scooters for growth once COVID-19 is contained.
With talks apparently continuing between Grubhub (NYSE: GRUB) and Uber Technologies (NYSE: UBER) over Uber's possible acquisition of the food delivery service, four senators sent a letter to the Department of Justice (DOJ) and the Federal Trade Commission (FTC) asking them to watch the deal carefully. The senators, all Democrats, allege the deal could damage the market's competitiveness and they want a full investigation if Uber actually agrees to buy Grubhub.
My wife placed an order on Grubhub (NYSE: GRUB) from a local Italian restaurant. When it arrived, a piece of it was wrong (we received the spaghetti bolognese entree instead of the polenta bolognese appetizer) and we were charged for the pricier item as well as a mysterious tip on top of the 15% we had already added. This eatery was not an actual Grubhub partner.
In a new letter to the U.S. Federal Trade Commission and the Department of Justice, a group of Democrats in the Senate urge regulators to "closely monitor the negotiations" between Uber and Grubhub and to initiate an antitrust investigation if a rumored deal between the two companies comes to pass. In a letter signed by Senators Amy Klobuchar, Patrick Leahy, Richard Blumenthal and Cory Booker, the lawmakers caution that a merger between Uber's food delivery service Uber Eats and its competitor Grubhub would lead to "serious competition issues" and a market dominated by only two remaining players.
In this episode of Industry Focus: Tech, Dylan Lewis and Motley Fool contributor Brian Feroldi discuss the meal delivery space in general, including Uber's (NYSE: UBER) reported plan to buy Grubhub (NYSE: GRUB). To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. Dylan Lewis: It is Friday, May 15th, and we are talking about Uber's reported plans to buy Grubhub and the meal delivery space.
Uber (NYSE: UBER) and Grubhub (NYSE: GRUB) -- two of the largest names in food delivery -- are reportedly in acquisition talks. While Grubhub was seeking 2.15 Uber shares per share of its own company, the larger business countered with 1.9 shares. Grubhub said that's not enough, but the two companies continue to talk.
(Bloomberg Opinion) -- Uber Technologies Inc. CEO Dara Khosrowshahi told investors on a call in November that his goal was for the ride-hailing giant to be one of the world’s “magical” companies that can grow its revenue at “massive scale.” But now, the business challenges created by the Covid-19 pandemic are forcing the onetime unicorn to pull back on grand ambitions that once included disrupting vast swaths of the economy. Perhaps Uber isn’t so magical after all. But that is fine.In a Monday filing, Uber announced it will be laying off an additional 3,000 employees on top of the 3,700 job cuts it had already announced on May 6. The combined reductions are equivalent to about 25% of its workforce. Bloomberg News also reported Monday that Khosrowshahi sent an email to his staff, saying the company plans to shut down some non-core projects such as its Incubator and AI Labs. Further, the Wall Street Journal said Uber is reevaluating its money-losing freight and autonomous-driving businesses.Decisions to shut down some of its pie-in-the-sky bets and focus on its core businesses – ride-hailing and food delivery – are a prudent course of the action. While the company had $9 billion in cash at the end of March, it still generated a $1.3 billion operating loss for its first quarter. That’s a level that is unsustainable over time.If Uber does exit all of its non-core businesses, it can save a ton of money. In its March quarter alone, its freight segment lost $64 million in adjusted Ebitda (a measure of profitability); its advanced technologies group segment, which includes its autonomous driving bets, lost $108 million. Shuttering these units or at least putting them on pause makes sense, as the payoffs are many years away. News of the cost-cutting comes as Uber pushes for a merger its food-delivery business with Grubhub Inc. Last week, I wrote that a deal between Uber Eats and Grubhub made sense as it would benefit both companies, as well as the rest of the loss-ridden industry, and could potentially generate hundreds of millions of annual cost synergies due to overlap in marketing and operating expenses. It looks as if the deal negotiations are still alive as the Journal reported the two companies were still talking as of Sunday.Expense rationalization through business restructuring and mergers may not be the most magical in terms of business strategies, but they are needed to create a sustainable business model for the long run. With its stock price up some 10% already this month, Uber management seems to be getting the message that no magic is needed — just smart discipline.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Uber is laying off another 3,000 employees, the Wall Street Journal first reported. "I knew that I had to make a hard decision, not because we are a public company, or to protect or stock price, or to please our Board or investors," Uber CEO Dara Khosrowshahi wrote to employees today in a memo, viewed by TechCrunch . As part of the layoffs, Uber is expected to pay up to $145 million to employees via severance and other benefits, and up to $80 million in order to shut down offices, according to a filing with the SEC.
Uber Technologies' (NYSE: UBER) initial offer to buy out Grubhub (NYSE: GRUB) at a price of 1.9 Uber shares per Grubhub share was refused during the weekend, but the deal may not be off the table. According to The Wall Street Journal, talks between the CEOs of both companies indicated that Grubhub deemed the price too low to accept on Sunday. An offer of 1.925 Uber shares per Grubhub share may be possible, Uber CEO Dara Khosrowshahi stated after the first offer was rejected.
(Bloomberg) -- Wolt, a Finnish food-delivery company, has raised 100 million euros ($108 million) to prepare for an economic downturn.The funds came from existing investors including ICONIQ Capital, Highland Europe, 83North and EQT Ventures, with Goldman Sachs Growth Equity participating as a new investor, the company said in a statement on Friday.“We would not have raised this round if it wasn’t for the global Covid-19 crisis and the potential downturn we see in the near future,” Chief Executive Officer Miki Kuusi said in the statement. “It’s our responsibility to do everything that we can to be as well-prepared as possible given the uncertainty within the current economy.”The funds will also give Wolt room to accelerate its expansion in some markets, the company said. The virus has had a mixed impact on food-delivery companies -- forcing many restaurants to shut while also driving an increase in demand from customers in lockdown. Uber Technologies Inc. has made an offer to acquire Grubhub Inc. in a move to combine two of the largest food-delivery apps in the U.S., people familiar with the matter said earlier this week.Wolt, founded in Helsinki in 2014, operates in 22 countries and offers food from 10,000 restaurants. This financing round brings Wolt’s total funding to 258 million euros.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In this episode of Market Foolery, Chris Hill and Motley Fool analyst Jason Moser discuss the latest headlines from Wall Street. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks.
Grubhub is still declining to reveal if it actually intends to sell itself, though the company remarked "consolidation could make sense in our industry" in a statement, according to Reuters. According to the sources, Uber wants to acquire Grubhub for around $6 billion, basing the deal on a share valuation that makes each Grubhub share worth 1.9 Uber shares. Grubhub, on the other hand, apparently wants each of its stock to equal 2.15 Uber shares.
Shares of Grubhub (NYSE: GRUB) have fallen today, down by 8% as of 12:20 p.m. EDT, after the New York City Council late yesterday approved a measure that caps the fees that online food ordering and delivery platforms can collect. New York City is one of the biggest markets for food delivery apps. The New York City Council voted yesterday on an emergency bill that is designed to help small businesses and local restaurants during the COVID-19 pandemic.
As Uber negotiates with Grubhub about a possible takeover, restaurants are expressing their distaste for the deal. Mom-and-pop eateries struggling amid stay-at-home orders are fed up with the big commissions charged by the delivery companies that can range as high as 30% on each order. And they're upset over the discount breaks given to big chains like McDonald's. A merger would create the U.S.' largest restaurant delivery company. Grubhub now has about 300,000 U.S. restaurants on its app, while Uber Eats boasts over 100,000 in the U.S. and Canada. Some big cities are taking action. New York City Council passed an emergency bill Wednesday to cap fees to 15% of an order for delivery services and 5% for non-delivery services like marketing. A day earlier, Chicago enacted rules requiring delivery companies to give customers itemized breakdowns that include commissions and service fees paid by the restaurants to the apps. Grubhub can't afford to anger the restaurants because they make up the vast majority of establishments on its app. It is deferring up to $100 million of commission payments to a later date. For now, Uber Eats said it's waiving delivery fees for restaurants.
(Bloomberg) -- In nearly three years at the helm of Uber Technologies Inc., Dara Khosrowshahi has focused mostly on cutting costs. Now he’s seeking a return to what defined his career before Uber: buying things.Uber is negotiating a potential acquisition of Grubhub Inc. as the coronavirus pandemic drives a surge in demand for food delivery, people familiar with the negotiations said. If a deal is reached, Grubhub, with a market value of $5.3 billion, would be the biggest Khosrowshahi has ever done.Khosrowshahi, 50, cultivated a reputation as an effective dealmaker when he ran Expedia Group Inc. for more than a decade. He completed 41 transactions there with a total value of $12.7 billion, according to data compiled by Bloomberg. His tenure at the online travel giant was defined by a strategy he picked up as a top lieutenant to IAC/InterActiveCorp’s billionaire chairman, Barry Diller: roll up competitors, integrate them and reap the rewards of scale.The plan for Grubhub follows the same playbook. The companies anticipate there would be major cost savings by eliminating jobs seen as duplicative, a person familiar with the negotiations said. This form of corporate efficiency—embraced by investors based on the market’s reaction to the news this week—sparked a swift rebuke from some officials in the U.S., one of whom described the proposed merger as “pandemic profiteering.” Through a spokesman, Khosrowshahi declined to be interviewed.In the negotiations, Grubhub had been seeking a ratio of 2.15 Uber shares for each one of Grubhub’s, a person familiar with the talks said. The companies are now discussing a deal valuing Grubhub stock at 1.9 Uber shares, the Wall Street Journal reported.Khosrowshahi first developed an admiration for Diller in the 1990s while working as an analyst at the investment bank Allen & Co. Diller, a client of the firm, had made a hostile bid for Paramount Pictures. “I thought to myself, ‘That’s the guy I want to work for,’” Khosrowshahi told Bloomberg Businessweek in 2017. He joined in the dot-com boom and worked his way up through Diller’s portfolio of companies, becoming chief executive officer of Expedia in 2005.Expedia had already purchased Hotwire and Hotels.com before Khosrowshahi took over, and he accelerated the strategy. “Them rolling up a category is not exactly new,” said Stuart MacDonald, who was Expedia’s chief marketing officer at the time and is now a travel industry consultant. “Dara turbocharged it.”Khosrowshahi tried to balance his acquisitiveness with a thriftiness around the office. His desk at Expedia sat in an open-plan office on the 18th floor of a skyscraper in Bellevue, Washinton, overlooking Seattle. He chose not to rent the top floor because he thought it was too expensive, said Mark Okerstrom, who sat beside Khosrowshahi for seven years and worked with him on a series of high-profile deals. “He’s not one of those leaders that presides from an ivory tower,” Okerstrom said.Khosrowshahi’s 12-year tenure at Expedia was defined by an escalating battle with Booking Holdings Inc. Each tried to outflank the other by buying upstart brands, splicing them into their tech ecosystems and squeezing out incremental profits. Revenue at Expedia grew to $10.1 billion, from $2.1 billion, and the company’s share price rose nearly sevenfold while Khosrowshahi was in charge.His time there culminated with two big deals, one after the other. In 2015, Expedia paid $1.6 billion for Orbitz, swallowing the only serious rival besides Booking to secure a hold of the U.S. market. The Justice Department investigated the antitrust implications for six months and approved the deal. Then, months later, Expedia bought HomeAway for $3.9 billion, helping mount a defense against the latest upstart roiling the industry, Airbnb Inc.Neither acquisition went smoothly at first. Revenue took a hit in 2016, due partly to network outages from attempts at merging Orbitz’s systems with Expedia’s and to HomeAway’s runaway spending. “There were a lot of questions at first,” said Okerstrom, who took over as Expedia CEO in 2017 before he was ousted last December after clashing with the board over growth prospects. In hindsight, both deals are seen as largely successful for helping Expedia keep the voracious growth of Booking in check. Despite HomeAway’s costs, it became a core source of growth for the company.When Khosrowshahi wants to get serious at the negotiating table, he has a tell. His hand goes behind his neck, his elbow slides across the desk, and he hones in on the subject with a calming timbre. “He leans into the numbers, he leans into the issues, and he leans into you,” said Rob Greyber, who worked with Khosrowshahi at Expedia for about seven years managing the company’s often-fraught relationship with airlines. “In a deal, when there can be a lot of emotion going on, he can snap out of all that, which is a great asset.”In 2017, Khosrowshahi was selected as the unlikely candidate to replace Uber’s co-founder, Travis Kalanick, as CEO. Uber, just eight years old at the time, was already a global behemoth with a valuation far exceeding that of Expedia. Khosrowshahi’s main tasks were to heal a corporate culture that many employees had described as toxic and bring operational discipline. For the latter, he got to work selling assets and cutting costs.Uber sold operations in Russia and Southeast Asia for stakes in local ride-hailing companies in 2018. He used the same technique last year to offload Uber’s food business in India to Zomato, eliminating the most costly delivery market for the company. The cuts continued last week with the closure of food delivery in seven countries and the dismissal of 3,700 employees worldwide.Khosrowshahi has made purchases at Uber, too. In 2018, he acquired Jump, then a tiny startup renting electric bicycles. “Negotiations were directly with him,” said Vivek Ladsariya, a general partner at SineWave Ventures, an investor in Jump. Khosrowshahi sold the Jump business last week to Lime as part of an investment in the scooter-rental startup. In the Middle East, Uber bought ride-hailing company Careem for $3.1 billion, a deal that closed this year. Then Uber said last week it was cutting 31% of Careem’s staff.Profit margins are slim in food delivery. Consolidation could help Uber reduce costs and turn a profit. But buying a company the size of Grubhub is a new kind of challenge for Khosrowshahi. “He’s not going to rush into anything,” said Woody Marshall, a venture capitalist who has known Khosrowshahi since they were teenagers.(Updates with Uber-Grubhub negotiations in the fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Uber Technologies Inc. brought a $900 million bond sale, just a day after a report said it has made an offer to acquire food delivery company Grubhub Inc.That’s up from a planned $750 million, which may be used for acquisitions among other general corporate purposes, according to a statement Wednesday. The five-year notes, which can’t be bought back for two years, will yield 7.5%, according to people with knowledge of the matter, who asked not to be named discussing a private transaction.Read more: Uber Fueling Up With Liquidity for Grubhub M&A: Credit ReactA deal with Grubhub would combine two of the largest food-delivery apps in the U.S. as the coronavirus drives a surge in demand, Bloomberg reported Tuesday. While neither company confirmed, they both acknowledged they’re always looking for opportunities to provide value to their businesses.Uber said last week that it will close its food delivery service, Uber Eats, in markets where it isn’t popular. In the first quarter, bookings from ride-hailing customers declined for the first time ever due to travel shutdowns, but Uber said that part of its business is now beginning to recover.S&P Global Ratings grades Uber’s new unsecured notes as CCC+, or seven levels below investment grade. Moody’s Investors Service rates them B3, one step higher than S&P.Morgan Stanley, Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., Barclays Plc and HSBC Holdings Plc are managing the bond sale, according to the people.(Updates with size in first paragraph, yield in second)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Analysts appear divided over the future possibilities offered by a potential purchase of Grubhub (NYSE: GRUB) by Uber Technologies (NYSE: UBER), with some forecasting a strong boost to both companies' share values and others believing the buyout is either unwise or impossible.
A potential tie-up between Uber and Grubhub could balloon the ride-hailing company’s market share and bring forth long term synergies, according to Morningstar senior analyst Ali Mogharabi.
(Bloomberg) -- Uber Technologies Inc. outlined new safety procedures at a virtual event on Wednesday, a move aimed to inspire more drivers and riders to feel comfortable getting in a shared car again.The rules will require drivers, passengers and food delivery couriers to wear face masks as cities begin to reopen across the U.S. After the Covid-19 pandemic began spreading rapidly more than two months ago in the U.S., Uber urged riders to stay home and shuttered its carpool service completely. Drivers were often conflicted about continuing to pick up the few remaining passengers or putting their health at risk.The Centers for Disease Control and Prevention has recommended wearing face coverings in public since April 3 to prevent the spread of the virus. But masks have become a polarizing sign. Some people believe they aren’t necessary and that the economic effects of the lockdowns outweigh the health risks. President Donald Trump has long defended his decision to not wear a mask, helping to fuel an anti-mask movement across the U.S. that has spurred protests, fights and at least one fatal shooting.Uber will also ask drivers to submit a selfie showing them wearing a mask. Drivers who refuse the verification in the U.S., Canada, India and most of Europe and Latin America will not be able to go online beginning May 18.“We’ve designed this feature to adapt to changing public health guidance and regulations as the pandemic evolves,” Uber Chief Executive Officer Dara Khosrowshahi said in a blog post. The mask policy will remain in effect through June and be reassessed based on local public health needs. The global pandemic has been taken a toll on Uber’s ride-hailing business, with rides down about 80% globally in April. As a result, Uber announced cost-cutting measures last week, including ending food delivery operations in seven countries and trimming 14% of its workforce. But Uber’s food delivery service, Uber Eats, has fared better as homebound people order more takeout. Uber has approached Grubhub Inc. about a takeover, according to people familiar with the situation, a move that could combine two of the largest food-delivery services in the U.S. The proposed deal is already facing resistance from officials, who said Uber has failed to set up adequate safety measures to mitigate the risk of infection for drivers.Under the new rules, riders will also need to confirm they’ve taken precautions, including wearing a mask and washing their hands, and must agree to sit in the back seat and open windows for ventilation. Uber is also reducing the maximum suggested number of passengers for an UberX ride to 3 from 4. Drivers will be able to cancel a trip without penalty if they don’t feel safe, including if the rider isn't wearing a face mask.Other efforts Uber is making to keep drivers and passengers safe include allocating $50 million to purchase supplies like masks, disinfectant sprays and wipes, hand sanitizer, and gloves. As of this week, Uber has obtained more than 23million masks for drivers and delivery people around the world, the company said. Uber also announced two new partnerships, with Clorox Co. and Unilever Plc, to provide disinfecting tips and hygiene kits for drivers and delivery people in some markets. For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.