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Uber Gains on Securing 30-Month London License

Published 28/03/2022, 16:28
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UBER
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By Dhirendra Tripathi

Investing.com – Uber Inc (NYSE:UBER) stock recouped all its losses in the session and was up 0.8% at 11:10 ET Monday as traders turned their attention to Saturday’s news of the ride-hailing app securing a 30-month license to operate in London.

The ride-hailing service had been engaged in a dispute with regulators over the past five years over safety issues and had lost its license to operate twice over that period.

It was in 2019 when Uber lost its license to carry paying passengers in London for the second time. A legal battle ensued and a year later, the company was granted an 18-month license. The U.S. company first lost its license in 2017.

Transport for London now finds Uber to be a fit and proper person and has granted a license with conditions, a Reuters report quoted the authority’s spokesperson as saying.

Uber had previously claimed that it has assuaged safety concerns by improving insurance document verification systems and rolling out real-time identification.

The firm also struck a deal with Britain's GMB union last year, allowing it to represent up to 70,000 drivers.

Earlier this month, Uber raised its current-quarter guidance, driven by a “significant” improvement in February demand for mobility.

The company is now expecting its basic operating income on an adjusted basis to come in between $130 million and $150 million in the first quarter. This range was earlier $100 million to $130 million.

Uber said it expects a sequential improvement in adjusted EBITDA for both Mobility and Delivery segments.  

The company had, in February, reported its second operating profit for a quarter while its food delivery business delivered its maiden profit at a basic operating level. The company also reported the most active users in its history.

According to the company’s forecast then, revenue this quarter was seen at $26 billion.

 

 

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