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Uber (UBER) Rides Business Down 70%, Better Than April Drop

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Uber Technologies (UBER - Free Report) revealed that its rides business is showing gradual improvements with easing coronavirus-led restrictions.

At a conference held by Bank of America, Uber’s CEO Dara Khosrowshahi notified that its rides business has been showing week-over-week improvement and is currently down 70% year over year, which is better than the 80% fall in April. He added that rides business in Hong Kong has improved more than 80% from the lows amid COVID-19 concerns. Uber carries a Zacks Rank #3 (Hold).

Earlier in the month, Uber’s arch rival Lyft (LYFT - Free Report) , carrying a Zacks Rank #3, gave similar news, stating that rides increased 26% in May from April but were down 70% year over year.

Coming back to Uber, as for the Eats business, Khosrowshahi stated that the same is continuing to boom, having more than doubled year over year as of May. This might ease investor concerns that the Eats operations surge was a situation-specific trend only limited to the coronavirus restriction days. Uber is aiming to fortify its Eats business and is looking for opportunities in this regard. The ride-hailing company has been in talks to purchase Zacks #3 Ranked Grubhub , in an all-stock deal. This acquisition would give Uber Eats decisive control of the food delivery market in the United States with a combined market share of 48%. However, Uber did not comment on this proposal at the Bank of America conference.

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