UK: Uber and food-delivery app Deliveroo to offer discounts to vaccinated customers

A Deliveroo rider cycles through central London
A Deliveroo rider cycles through central London

  • The UK government has announced a partnership with businesses to encourage uptake of the COVID-19 vaccine.
  • The scheme includes ride-sharing apps Uber and Bolt, and the food delivery app Deliveroo.
  • The aim is to get more young people, aged 18-29, vaccinated.
  • See more stories on Insider’s business page.

Several UK ride-sharing and food delivery apps are offering discounts to young people who get their COVID-19 vaccine.

Food delivery and taxi firms including Uber, Bolt, Deliveroo, and Pizza Pilgrims will offer discounts as a part of the Government drive to have more young people take their COVID-19 vaccinations.

Uber will be sending notifications to all users in August to urge them to get the vaccine and will offer discounted rides and meals on Uber Eats for young adults who get the jab.

Bolt – another popular taxi app – will be offering free ride credit to vaccination centers.

Deliveroo will be offering vouchers to young people who get their vaccine, with Pizza Pilgrims joining on a similar offer.

A Deliveroo spokesman said: “We want to do our small part to support the NHS during the pandemic, including delivering a million free meals to frontline NHS staff and vaccine centers. This is the next step in helping people get vaccinated and safely back to normal.”

Thom Elliot, Pizza Pilgrims Founder, said: “By making getting your jab as easy as grabbing a pizza, hopefully, we can help our teams and our customers get both their first and second doses as easily and quickly as possible. Watch this space for more details.”

Health and Social Care Secretary Sajid Javid said: “I’m delighted that more than two-thirds of young people in England have already had a first dose of a vaccine, helping to build a wall of defense around our country.

“Thank you to all the businesses who are stepping up to support this important vaccine drive. Once available, please go out and take advantage of the discounts.”

The UK has a high vaccination rate, with 88.4% of eligible people having received one dose, and 71.8% had received two.

This particular campaign is focusing on the 33% of people aged 18-29 who have not received a first dose of the vaccine.

This campaign comes as the UK sees a decline in the recent peak in COVID-19 cases, which at its peak saw almost 43,000 cases of COVID-19 be diagnosed in a single day.

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Uber slides 5% on report SoftBank will shed a third of its stake in the ride-hailing app

Uber
  • Uber’s stock fell 5% on Thursday after CNBC reported SoftBank is offloading a large stake in the firm.
  • The latest share sale could take SoftBank’s holdings in Uber to less than 100 million shares.
  • Reports say the decision is unrelated to SoftBank’s $4 billion loss from its stake in Didi.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Uber’s stock fell 5% in Thursday’s pre-market session after CNBC reported SoftBank will sell about a third of its stake in the ride-hailing firm.

SoftBank, one of Uber’s largest shareholders, plans to sell about 45 million of its 184 million shares, the report said. Any buyer is said to have a 30-day lockup period.

In January, the Japanese conglomerate sold 38 million Uber shares worth $2 billion.

Further shares were said to be offloaded in June, and SoftBank’s stake could stand at below 100 million shares with the latest transaction, according to a Financial Times report, which cited a person familiar with the matter.

China’s recent crackdown on rival ride-hailing app Didi has reportedly cost SoftBank, its largest shareholder, about $4 billion. It has also suffered losses related to the proposed initial public offering of Alibaba’s Ant Group, which was halted by regulators after Jack Ma publicly snubbed local banking rules.

But reports from Reuters and the FT say SoftBank’s decision to cut its Uber holding is unrelated to its stake in Didi, which went public on the US stock market in blockbuster IPO in late June. The tech conglomerate believed it was the right time to cash out and profit from its holding, a source told Reuters.

SoftBank has been an Uber investor since 2018, when it picked up a 16% stake in the firm through an entity called SB Cayman 2 Ltd. In a filing as recent as March 31, Uber refers to SoftBank as a “large shareholder.”

Softbank’s $100 billion Vision Fund has been hit hard by China’s regulatory crackdown on the tech sector, with the value of its holdings sliding $11 billion since July, compared to a $1.1 billion gain in the April-to-June quarter, according to data seen by the FT.

SoftBank didn’t immediately respond to Insider’s request for comment.

Uber’s stock, down 9% so far this year, had risen slightly a week ago after announcing its $2.25 billion acquisition of logistics tech company Transplace from TPG Capital.

Didi Global’s shares are fallen 37% since its first day of trading.

Read More: Wall Street’s 10 most accurate analysts say you should buy these 10 stocks right now for immense upside over the next 12 months

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An Uber Eats driver discovered she had won $250,000 on a scratch-off lottery ticket while waiting for her next delivery in Maryland

The Maryland Lottery
The woman is known as “Grateful Mom” for anonymity purposes.

An Uber Eats delivery driver from Odenton, Maryland, struck it lucky after buying a scratch-off lottery ticket for $250,000.

According to CNN, who reported the story on Sunday, the winner – dubbed “Grateful Mom” for the purpose of anonymity – was sitting in her car waiting for her next job when she scratched off the winning ticket.

She told the Maryland Lottery her Uber Eats app alerted her to her next job within seconds but she immediately said to herself: “I don’t want to do Uber Eats right now!”

She added: “Man, I was sitting in that car going crazy!”

The 47-year-old hit the jackpot through a single play of the “CASH” scratch-off game. Players have to pay $10 for a ticket with a top prize of $250,000.

“Grateful Mom” is a regular scratch-off ticket player but usually limits her purchases.

On the day she won, she stopped by a Quick Save Mart, located at 524 Defense Highway in Annapolis, and picked out a few instant tickets. She used the Maryland Lottery app on her phone to see remaining tickets with top prizes.

That’s when the $10 “CASH” game caught her eye. After purchasing just one CASH scratch-off, “Grateful Mom” returned to her car and discovered her big win shortly afterwards.

“Grateful Mom” intends to use her winnings to settle some bills, provide some financial support to her kids, and put a downpayment on a house.

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Uber and Lyft could be avoiding $153 million in Canadian taxes every year by relying on contract workers, report says

Dara Khosrowshahi logan green
Uber CEO Dara Khosrowshahi and Lyft CEO Logan Green

  • Uber and Lyft could avoid a combined $153 million in taxes annually in Canada, a new report claims.
  • Canadians for Tax Fairness blamed lax disclosure laws and companies classifying drivers as contractors.
  • Uber and Lyft both disputed the findings, telling Insider they paid all required taxes in Canada.
  • See more stories on Insider’s business page.

Uber and Lyft could be avoiding a combined $153 million in taxes every year in Canada, according to a new report from the nonprofit Canadians for Tax Fairness (C4TF).

The report estimated Uber and Lyft avoid $53.9 million in corporate taxes as well as $81.3 million in unemployment insurance and benefits taxes by taking advantage of lax financial disclosure requirements around corporate taxes, in addition to classifying drivers as contractors.

While not illegal, the tactics let Uber and Lyft benefit from taxpayer-funded programs like roads, pensions, and unemployment insurance, despite paying very little into those programs, C4TF argued.

“Uber and Lyft both depend to a huge degree on publicly funded infrastructure to make their revenues, but they provide very little of the funding for that infrastructure because they pay next to nothing in taxes,” DT Cochrane, the report’s author and a policy researcher at C4TF, told Insider.

While the lack of transparency around corporate taxes makes it impossible to know exactly how much the companies paid, he added: “it’s doubtful that it approaches the level that we think that it should.”

Uber and Lyft told Insider they disputed the report’s findings, and said they have paid all taxes required by Canadian law.

“Uber contributes millions of dollars in the form of ridesharing fees, which help local and provincial governments pay for ridesharing, transit, and other initiatives,” an Uber Canada spokesperson told Insider.

“We file all of our taxes in Canada, including federal and provincial corporate income tax, payroll taxes, GST/HST, QST and applicable provincial sales tax,” a Lyft spokesperson told Insider, adding that the company “is in good standing with the Canadian tax authorities.”

But C4TF’s report cited several ways it says Uber and Lyft may have been able to significantly cut their tax bills.

First, C4TF estimated the companies brought in $203 million in combined profit in Canada in 2019, which should amount to $53.9 million in federal and provincial corporate taxes. Neither company discloses how much they pay in Canadian corporate taxes, but according to C4TF, using Uber’s global average effective tax rate of 1.9%, Uber and Lyft would have paid roughly $8.6 million.

Multinational corporations have come under increasing scrutiny for attempting to lower their global tax bills by routing profits through low-tax countries. An Australian research group accused Uber of using Dutch shell companies to turn $5.8 billion in global revenue into $4.8 billion in losses on paper, allegedly sidestepping millions of dollars in taxes.

Until recently, Uber’s Canada subsidiary was owned by its Dutch subsidiary, which C4TF claimed may have let it avoid Canadian taxes as well by booking Canadian revenue in the Netherlands where corporate taxes are lower (Uber claimed it had discussed plans to spin off its Canadian subsidiary as early as 2018).

In response, C4TF argued Canadian authorities should require more transparency from companies like Uber and Lyft to ensure they are paying their full tax bill.

C4TF’s report also estimated Uber and Lyft avoid $81.3 million in unemployment insurance and pension taxes by classifying drivers as contractors – a growing source of legal and political headaches for the companies in the US, the UK, Spain, and other countries. In a ruling last year, Canada’s Supreme Court opened the door for a class-action lawsuit that could chip away at the companies’ ability to classify drivers there as contractors.

Lyft’s spokesperson told Insider the Canadian government “recognizes drivers on Lyft as independent contractors and assigns taxes accordingly.”

One such tax includes Canada’s sales taxes. Because Canadian law requires individual contractors to collect and pay sales tax (except in Quebec, where the contracting company is responsible), C4TF argued Uber and Lyft drivers are unfairly shouldering those costs.

C4TF also claimed that because Uber and Lyft don’t withhold those sales taxes – an estimated $217 million per year – from drivers’ earnings upfront, they’re overstating how much drivers are really making.

Cochrane told Insider the report was also a critique of Canadian authorities that do not hold companies accountable for paying their fair share.

“We don’t know exactly what [Uber and Lyft’s] bookings are, what their revenue is, what their take rate is, what their profit margin might be, what their taxes paid are simply because the Canadian government is falling behind on requiring greater corporate transparency,” he said.

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How to schedule an Uber ride in advance, or cancel a scheduled ride if you no longer need it

traveller getting suitcase ready looking at phone in bedroom
It’s easy to schedule an Uber ride in advance right from the Uber mobile app.

  • You can schedule an Uber ride for hours, days, and even weeks ahead of time on the Uber mobile app.
  • For a scheduled ride, Uber sets a price range that you don’t pay until later.
  • It’s possible to cancel a scheduled Uber ride and get money back if it’s early enough.
  • Visit Insider’s Tech Reference library for more stories.

Scheduling an Uber ride for later is incredibly easy via the mobile app for iPhone, iPad, and Android.

In just a minute, you can schedule an Uber ride days or weeks ahead of time. And if your plans change, cancelling your scheduled ride is just as convenient.

Here’s how to schedule a ride and cancel scheduled rides on the Uber mobile app.

How to schedule an Uber ride

1. Open the Uber app on your Apple or Android device.

2. In the Where to? text field on the Uber homepage, tap the drop-down arrow next to a clock icon and the word Now.

Screenshot of Uber homepage
Tap the “Now” drop-down to set a date and time.

3. In the pop-up, use the scroll bars to select a date, time, and AM or PM. Hit Set once you’ve chosen the date and time.

Screenshot of "Schedule a Ride" page on Uber app
Choose a date and time, and tap “Set.”

4. On the next screen, type in the pick-up and drop-off location, or select previous locations from the list on the lower half of the screen.

Screenshot of pick-up and drop-off locations page on Uber app
Set your pick-up and drop-off locations.

5. The next screen will show a map of the route and the estimated price of your trip. Make sure your payment method is correct, and then select Schedule UberX at the bottom of the screen to confirm your scheduled ride.

Screenshot of Uber app route summary and scheduling page
Choose a car option and select “Schedule UberX.”

How to cancel your scheduled Uber rides, and view all the rides you have scheduled

1. To view your scheduled trip(s), open the Uber app, then tap the three horizontal lines in the top-left corner of the screen.

Screenshot of Uber app homepage
Tap the icon in the top-left corner.

2. Tap Your Trips.

Screenshot of menu in Uber app
Go to “Your Trips.”

3. Then on the next screen, tap the drop-down oval in the top-right corner of the screen, which will likely read Past. In the drop-down list, select Upcoming.

Screenshot of "Your Trips" page in Uber app
Choose “Upcoming” to see your scheduled trips.

4. Your upcoming trip(s) will now be displayed. To cancel one, just tap Cancel Ride then confirm with the CANCEL RIDE button that pops up.

Screenshot of "Your Trips" upcoming trip summary page in Uber app
Tap “Cancel Ride” to delete the scheduled ride.

The scheduled trip will immediately be cancelled and removed from the Your Trips page, and you won’t incur a fee if you cancel it before you’ve matched with a driver.

How to contact Uber support as a driver or rider if you need help resolving an issueYou can add extra stops to any Uber ride – here’s how to do it, and avoid added charges for delaying at a stopHow to get your prescriptions delivered through Uber and avoid a trip to the pharmacyHow to request an Uber with a car seat for your child

Read the original article on Business Insider

Didi’s US shares plunge 25% after China cracks down on ride-hailing app, just days after $68 billion IPO

Didi Chuxing China ride-hailing app
Didi is China’s biggest ride-hailing app.

Chinese ride-hailing app Didi dropped as much as 25% on the US stock market on Tuesday after China cracked down on the company, only days after its blockbuster initial public offering in New York.

Didi’s US-listed shares were last down 21.98% by 9.50 a.m. ET, to $12.10. US stock markets reopened on Tuesday after Monday’s 4th of July holiday.

Chinese authorities on Sunday ordered app stores to remove Didi Chuxing, the country’s biggest ride-hailing company, from their platforms. The Cyberspace Administration of China cited serious violations in the collection and use of personal data.

The crackdown came less than a week after Didi’s shares started trading on the New York Stock Exchange in one of the biggest IPOs of the last 10 years. Didi hit the market on Wednesday, with shares closing at $14.14, giving the app a market capitalization of $68 billion.

The company said China’s move to lock out new users may have an adverse impact on its revenue in its home market.

Uber, which is the second-biggest US holder of Didi stock, fell 1.82% when markets opened.

Read more: POWER PLAYERS: These 9 Uber executives are fighting the company’s increasingly messy gig-economy policy battles

Shares of Full Truck Alliance and Kanzhun, two Chinese tech companies who also recently listed in the US, dropped 19.95% and 9.38% respectively. The declines came after China expanded its clampdown to put new restrictions on the two companies on Monday.

“China is cracking down on big tech, but the decision to remove [Didi’s] app from domestic platforms appears to be timed for maximum impact and embarrassment,” said Neil Wilson, chief market analyst at trading platform Markets.com.

“China’s Communist Party is bristling at the number of Chinese companies listing in the US this year, but there is a genuine concern at the heart of this – regulators are not impressed at the way Didi and other Chinese tech companies handle data.”

Axel Springer, Insider Inc.’s parent company, is an investor in Uber.

Read the original article on Business Insider

Didi plunges 30% in premarket trading after China cracks down on ride-hailing app, days after $68 billion US IPO

FILE PHOTO: The company logo of ride hailing company Didi Chuxing is seen on a car door at the IEEV New Energy Vehicles Exhibition in Beijing, China October 18, 2018.  REUTERS/Thomas Peter/File Photo
Didi Chuxing is China’s biggest ride-hailing app.

  • Didi shares plunged as much as 30% in premarket trading Tuesday after China cracked down on its app.
  • Didi Chuxing listed on the New York Stock Exchange on Wednesday in a $68 billion IPO.
  • Chinese authorities are taking a tough line with the ride-hailing app maker and other tech companies.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Chinese ride-hailing app maker Didi plunged as much as 30% in premarket trading on the US stock market on Tuesday, after China cracked down on the company only days after its blockbuster US initial public offering.

Didi’s American depository receipts then pared some of their losses to stand 20.99% lower at $12.27 as of 06.15 a.m. ET. US equity markets will reopen on Tuesday after Monday’s 4th of July holiday.

Chinese authorities on Sunday ordered app stores to remove apps from Didi Chuxing, the country’s biggest ride-hailing company, from their platforms. The Cyberspace Administration of China cited serious violations in the collection and use of personal data.

The crackdown came less than a week after Didi’s shares started trading on the New York Stock Exchange in one of the biggest IPOs of the last 10 years. Didi hit the market on Wednesday, with shares closing at $14.14, giving the app a market capitalization of $68 billion.

Uber, which is the second-biggest US holder of Didi stock, fell 1.37% in premarket trading.

Read more: POWER PLAYERS: These 9 Uber executives are fighting the company’s increasingly messy gig-economy policy battles

Shares of Full Truck Alliance and Kanzhun, two Chinese tech companies who also recently listed in the US, dropped 16.04% and 10.49% respectively in premarket trading. The declines came after China expanded its clampdown to put new restrictions on the two companies on Monday.

“China is cracking down on big tech, but the decision to remove [Didi’s] app from domestic platforms appears to be timed for maximum impact and embarrassment,” said Neil Wilson, chief market analyst at trading platform Markets.com.

“China’s Communist Party is bristling at the number of Chinese companies listing in the US this year, but there is a genuine concern at the heart of this – regulators are not impressed at the way Didi and other Chinese tech companies handle data.”

Axel Springer, Insider Inc.’s parent company, is an investor in Uber.

Read the original article on Business Insider

China orders the removal of the Didi app from stores, accusing the ride-hailing company of illegally collecting personal data

FILE PHOTO: A Didi sign is seen on a car during the China Internet Conference in Beijing, China June 21, 2016. REUTERS/Stringer/File Photo
Didi sign is seen on a car during the China Internet Conference in Beijing.

  • Chinese regulators’ suspension of the Didi app comes days after the company’s New York IPO.
  • China’s cyberspace agency accused the company of “serious violations” of in both collecting and using personal data.
  • The company has said it would comply with the ban and make required changes.
  • See more stories on Insider’s business page.

China on Sunday banned app stores from offering the Didi application, saying the ride-hailing company has been illegally collecting and using the personal data of users.

The move comes days after the company began trading on the New York Stock Exchange. China has increasingly clamped down on big tech over issues ranging from anti-competitive behavior to privacy and security. Last week, its cyberspace agency said it had launched an investigation into Didi to protect the safety of citizens and its national security.

The Cyberspace Administration of China said Sunday on its website that the investigation found the Didi app “has serious violations of laws and regulations” in both collecting and using personal information. App stores were notified to remove Didi and “strictly follow the legal requirements.” The statement did not say what kind of information was allegedly being unlawfully collected or used.

Didi said in a statement posted on Weibo that it would comply and make necessary changes. Registration of new users has been suspended and the app “will be removed from the shelves for rectification in strict accordance with the requirements of the relevant departments,” the statement said.

Users who have downloaded the Didi App can use it normally, and passengers’ travel and driver’s orders will not be affected, the statement said.

Didi is the second-largest ride-hailing app by market value in the world with a valuation of about $86 billion. Uber currently has a valuation of about $93 billion, while Lyft trades at a $20 billion valuation.

Shares of Didi soared as much as 28% in its IPO debut in New York on Wednesday. The company’s debut was the second-largest among Chinese companies after e-commerce giant Alibaba’s initial public offering in 2014.

Didi sports a number of high-profile investors, including Apple, which invested $1 billion in the ride-hailing company in 2016. Meanwhile, the SoftBank Vision Fund holds a 21.5% stake in Didi, while Uber and Tencent own a 12.8% and 6.8% stake in the company, respectively, according to Bloomberg.

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Uber glitch is charging some drivers for rides, rather than paying them. One driver lost $50 on a single journey – so they quit the app.

A driver and passenger wear face masks as Uber and Lyft drivers with Rideshare Drivers United and the
 Transport Workers Union of America conduct a ‘caravan protest’ outside the California Labor Commissioner’s office amidst the coronavirus pandemic on April 16, 2020 in Los Angeles, California.
Some Uber drivers say they’ve been charged to drive passengers thanks to a glitch in the app.

  • Uber drivers are being charged, rather than paid, for rides because of a glitch in the app.
  • One driver was charged $2.20 for a 16-minute journey. Another lost $50 on a single ride.
  • Both were later reimbursed but said they quit the app because of the experience.
  • See more stories on Insider’s business page.

Some Uber drivers have effectively paid to drive their passengers around because a glitch in the app left them out of pocket after completing rides.

One driver in Illinois said he lost $2.20 on a 13.5-mile journey. The driver, who spoke to Insider on the condition of anonymity, said he had stopped driving for Uber and Uber Eats after what he said was a poor experience with the company’s driver helpline.

Another driver said she was charged nearly $50 for a ride and didn’t receive a fare for another.

Uber took days to reimburse the fares on some occasions, the drivers said.

Read more: Uber’s cheap and popular Pool ridesharing service lost the company as much as $1 million a week in San Francisco alone

The Illinois driver said he decided to drive early morning on May 30 after noticing that prices were spiking. Uber pays drivers more during these so-called “surges,” when it hikes up fares in areas with high demand and few drivers.

The driver said he accepted a request to drive a passenger from downtown Chicago to the city’s Midway International Airport – a 16-minute, 13.5-mile journey.

But, after dropping the passenger off, the driver checked his earnings on the Uber app and was surprised to find a negative balance for that ride.

He said it was the first time it had happened in his two years of driving for ride-hailing apps, which he said included nearly 1,700 rides for Uber and 500 for Lyft.

When the driver first accepted the ride, the app displayed an estimated fare of $36.67, higher than normal because it added a surge multiplier, he said. But when he checked his account, he saw Uber had removed the surge and the passenger was only charged $9.06.

And after Uber deducted a $11.26 service fee, the driver lost $2.20 from the trip, he said.

The driver sent Insider screenshots of the app that verified these claims.

“It was completely crazy to me,” he said.

He isn’t the first Uber driver to encounter this problem.

After sharing his experience on Reddit, other drivers said that a common glitch was to blame, and that he’d be refunded.

In a separate Reddit thread, another Uber driver shared screenshots that showed they were charged $56.71 for driving a passenger, also in Chicago.

“It’s been going on for months now, and people post about it here almost weekly,” one Reddit user said.

Brianna Woodham, a former Uber driver in Atlanta, Georgia, told Insider that it had happened to her twice, and that she had stopped driving for the company as a result.

It happened once in early April, when Woodham was charged $49.54 for a ride, per screenshots seen by Insider. This was due to a surge fare being deducted, rather than added, to her account on the app. During another journey two weeks later, Woodham drove a passenger for 46 minutes – and earned nothing on it, screenshots shared with Insider showed.

Other users on Reddit said that on some occasions, they had only received their tip and not the full fare.

An Uber spokesperson told Insider that fares for certain trips booked through Uber Reserve, which lets riders book journeys up to 30 days in advance, were miscalculated “due to a software bug.”

“This was a terrible customer experience for drivers, and for that we apologize,” the spokesperson said. “We’ve ensured drivers have been paid in full for all affected trips, fixed the bug, and have put new safeguards in place.”

But both drivers Insider spoke to said that their glitched journeys had been booked through the standard UberX service, rather than Uber Reserve.

Drivers say they had problems contacting Uber for help

The Illinois driver said he called Uber’s driver support line from the help section of the app. But the line is only staffed from 10 a.m. to 8 p.m. Monday to Friday, according to the automated message drivers get when they call out-of-hours – meaning no one was there to answer the phone when the Illinois driver called.

“I didn’t think it was right for me to lose money on a trip and then have to wait two days to call support to have them fix it,” he said.

The spokesperson told Insider that all drivers have access to 24/7 support via in-app messaging, and that drivers who have completed 3,000 trips or are Uber Pro Gold, Diamond, or Platinum drivers have access to 24/7 phone support. Drivers at the blue level have access to phone support on weekdays, the spokesperson said.

The Illinois driver told Insider that he then turned to the Uber Twitter support account for help – and that after some back and forth, the Uber Twitter account stopped replying to his messages.

The driver sent Insider screenshots of the Twitter conversation that verified his claims.

The driver decided to tweet about his experience. The tweet went viral – and Uber finally paid attention. A rep contacted him and Uber paid him the original $36.67 estimated fare, he told Insider, plus an extra $25 that the representative said was “for the inconvenience.”

“It took the will of the internet to even get the issue addressed,” the driver said.

Woodham, meanwhile, said that she was refunded by Uber for the first journey around a week after it happened – but that she still hasn’t been paid for the second, glitched ride more than two months later.

She said that she had reached out to Uber multiple times, but never received a helpful response or refund. She didn’t think the issue would ever get resolved, she told Insider.

Drivers quit Uber as a result

Because of the lack of support he received from Uber, the Illinois driver said that he was worried he’d be in danger if a serious incident happened. Drivers were “sitting ducks,” he said, and referred to a recent incident in Cicero, Illinois, where a driver was shot and killed.

“If I have a serious issue, it just opens my eyes to the fact that unless it’s Monday through Friday business hours, we’re out there on our own, there’s not gonna be anybody there to reach out to, to address an issue,” he said.

He said that he had stopped driving for Uber and planned to turn to food delivery instead, and Woodham also said that she had stopped driving for Uber after the second glitched ride.

“It just made me rethink which gigs I do want to do,” the Illinois driver said. “I should never be charged to work by anybody.”

Read the original article on Business Insider

Uber’s investment in Didi could help unlock 40% upside potential in the US ride hailing giant’s stock, Bank of America says

Uber
  • The IPO of Chinese ride-hailing company Didi could help unlock value for shares of Uber, according to Bank of America.
  • Uber owns a 12% stake in Didi, which hit a valuation of about $80 billion on its first day of trading on Wednesday.
  • BofA’s $71 price target for Uber represents potential upside of 40% from Thursday’s close.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The recent IPO of Chinese ride-hailing giant Didi could help unlock value in shares of Uber, Bank of America said in a note on Friday.

The bank argued that Uber’s 2016 investment in Didi is now worth almost $10 billion. Uber owns about 12% of Didi, which touched a valuation of nearly $80 billion in its first day of trading on Wednesday. Uber had most recently pegged the value of its Didi stake at $5.9 billion, meaning there is upside to Uber’s assigned asset value that could help boost the stock price.

“Based on 1.9 billion shares outstanding for Uber, we estimate that translates to an incremental ~$2 per share in equity value for Uber,” BofA explained.

The bank rates Uber at a “Buy” and has a $71 price target, representing potential upside of 40% from Thursday’s close. And there’s even further room higher based on a sum-of-the-parts valuation, in which the BofA assigns a $90 per share value for Uber. A move to $90 would represent potential upside of 78%.

Despite BofA’s bullish outlook for Uber, the stock has considerably underperformed its peers like Lyft and DoorDash year-to-date. Shares of Uber are down 1% year-to-date, while Lyft and DoorDash are up about 27% and 26%, respectively.

The bank highlighted four overhangs the stock is currently facing, including a large seller of Uber stock in June that may have impacted supply and demand dynamics, Uber’s guidance suggesting bigger driver incentives, Uber’s international exposure, and a larger-than-expected UK driver settlement amount.

“While it’s hard to say if any one of these issues is the core drive for Uber’s relative underperformance, we reiterate our Buy rating as we think some of the overhang could clear in 3Q with further reopening and vaccination progress,” BofA said.

The bank expects Uber to reach breakeven profitability by the end of the year.

Read more: Bank of America names 5 semiconductor stocks to buy for the 2nd half of 2021 – and breaks down why each has ‘catch-up potential’ after lagging since January

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