Shares in US transport-technology company Uber are trading almost 2% higher pre-market on Friday. Uber has had a series of headlines over recent days which have helped create bullish sentiment. This in turn has supported Uber’s stock price over the week.
Uber Keeps London License
Firstly, Uber saw firm buying in response to news that the company had won its legal appeal to operate in London and has had its license renewed. The company had its license suspended in November 2019 by TfL due to a series of complaints regarding passenger safety.
This led to a 10 month legal process during which time Uber said that it was working on fixing any weaknesses and failings within its operating procedures.
Deputy Chief Magistrate Tan Ikram ruled this week that the firm had overcome its “historic failings” and approved TfL to grant the firm a new license.
New Upfront Pricing in UK
Following the news, Uber then announced that it will offer a new “upfront pricing” feature in the UK, establishing fixed price journeys for riders. This is aimed at improving transparency in pricing for drivers and for passengers and is based on new software updates. This can take into account real time road closures and traffic delays to give an accurate price to passengers ahead of the journey.
Uber Considering Buying “Free Now”
Following this announcement, Uber’s stock price was then lifted further in response to a Bloomberg report which cited Uber’s plans to acquire “Free Now”. Uber is reportedly considering growing its European footprint by purchasing the Daimler-BMW owned rise sharing service.
Weak Q2 Earnings
Uber’s stock price has been generally higher over recent months despite the company posting weak Q2 earnings. Uber reported second quarter earnings per share of $1.02 versus estimates of a $0.89 EPS. Uber cited the massive disruption caused by the pandemic with demand for its services decimated during the nationwide lockdowns which impact much of the quarter.
Gross bookings over the quarter were 35% lower than the same period last year while delivery gross bookings were 113% higher year on year. Revenues were down 29% year on year at $2.2 billion.
Commenting on the quarter Uber was keen to highlight the positives saying:
“We are fortunate to have both a global footprint and such a natural hedge across our two core segments: as some people stay closer to home, more people are ordering from Uber Eats than ever before.”
Uber Breaks Back Above Bearish Trend Line
Uber’s share price has now broken back above the bearish trend line from 2020 highs following the rebound off 34.47 support. While price holds above this level the focus is on continued upside with the 38.78 level the next topside barrier to break. This would create room for a move up to 41.60 next.