Tag Archives: Doordash

Uber and Bolt will compete in London and they have both a licence valid for 15 months

Uber is not alone in the market. Today, on Tuesday, Estonia-based Bolt launced in London. Uber will also face competition from Indian rival Ola which is backed by Softbank and a start-up backed by Chinese competitor Didi Chuxing.

Bolt, which is also know as Taxify have so far 20,000 registered drivers. In addition; the French app Kapten which is often called Chauffeur Privè, has also entered the market in London. Uber have huge competition with Ola in India and CEO and founder of Bolt, Markus Villig said Uber`s monopoly i London has come to an end.

Bolt are charging drivers much less to use its platform than Uber and that will be a huge challenge for Uber. Bolt will take 15% commission while Uber will take 25% commission for most drivers.

Bolt raised $175 million in funding from Daimler last year, along with funding from Transferwise and Chinese ride-hailing app Didi Chuxing.

The competition in the market can be seen in Uber`s revenue growth which have stalled over the past year. Lyft went public in March this year and Uber will face huge competiton in the U.S market.

The Softbank-backed food delivery company DoorDash has also been a national market share leader, and Uber have launched a pilot of its free-floating bike service called Junp in London. A food-delivery service called Uber Eats.

Uber won back a 15-month licence last year and so did Bolt. Uber was banned in London in 2017 because it was found to not be a «fit and proper» operator. The car-hailing app Bolt was also banned by Transport for London in 2017 because it did not have a licence. Bolt waited 18 months for its licence and now it is valid for 15 months.

London Mayor Sadiq Khan has defended the citys right to cap the number of Uber vehicles, and hes faced a lawsuit from drivers who are claiming racial descrimination over the city`s plans to charge them a daily congestion charge.

Forget about expensive taxi rides and slow public transport and move around fast and affordably. Your driver arrives in minutes.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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Uber is offering 180 million shares for $44 and $50 and that will value the company at about $84 billion

The stock market is declining while the IPO market is hotter than ever this week. At least 15 IPO deals are expected to be priced this week and this is the biggest week since 2015. What most investors are focusing on now is Uber which is the biggest U.S company deal since Facebook in 2012.

Uber is finish with its roadshow in London, Boston and San Francisco, and the company is expected to price the sale on Thursday this week. The demand for the stock is strong and investors have put in orders for at least three times the amount of stock on offer.

Uber can raise as much as $9 billion and if that happen it will be the largest this year. It`s not clear what the price for stock will be but I think that the turmoil in the market at the moment will have an impact of the price range.

Uber is offering 180 million shares for $44 and $50 and that will value the company at about $84 billion. They have $11 billion in revenue and about $50 billion in gross bookings. Like Lyft, they have big operating losses.

Last year, Uber lost $3,03 billion in the 12 months through March. This is the largest loss ever for a U.S startup in the year before an IPO, and they have a lot of challenges.

More than 82% of the revenue comes from ridesharing while 13% comes from food delivery. Uber has a deal with McDonalds and used to get a 20% commission on deliveries. McDonalds renegotiatied the deal, and now Uber gets a 15% commission.

Chief Executive Dara Khosrowshahi is trying to sell Wall Street his vision that Uber will become the dominant force in all forms of transportation. But the competition is intense in many places around the globe.

China have its own Didi Chuxing while India has Zomato and Swiggy for food delivery. Didi is also in Latin America where they compete with Doordash, and all of them in the food delivery business.

Uber and Lyft drivers are planning a strike from 7 am to 9 am on Wednesday to protest their wages, their treatment as independent contractors rather than employees, and the lack of regulation governing the new sector.

Drivers have challenged the ride-sharing companies many times for refusing to deem them employees, which means they are responsible for maintenance of their own vehicles as well as gas and insurance, which greatly reduces the amount they can earn per hour.

Their competitor Lyft went public in April this year and entered the market with its IPO price of $72 per share. The stock soared on their debut but it came down again as IPO`s usually does, and now the stock is trading about 16 percent below its IPO price.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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