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Uber grants UK drivers worker status in world first

elean
3 minutes

LONDON (AFP) - Uber on Tuesday (March 16) said it is granting its UK drivers worker status, with benefits including a minimum wage - a world first for the US ride-hailing giant. Weeks after a top court ruling that could shake up Britain's wider "gig economy" of 5.5 million people, Uber said its drivers would also get holiday pay and a pension. It is a massive change in the business model of a company that had argued before Britain's Supreme Court that its drivers were self-employed. From Wednesday, "more than 70,000 drivers in the UK will be treated as workers, earning at least the national living wage when driving with Uber," the taxi app said in a statement. "This is a floor and not a ceiling, with drivers able to earn more." The court ruled last month that Uber's drivers are entitled to worker's rights. The decision capped a protracted legal battle between UK drivers and the Silicon Valley taxi and delivery company. 'Flexibility Remains' Uber said its action over workers' rights "means drivers will earn with greater security, helping them to plan for their futures while maintaining the flexibility that is integral to the private-hire industry." The higher costs for Uber come as ...

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Uber’s pandemic food delivery boom fails to offset ride-hailing drop

elean
3 minutes

NEW YORK (BLOOMBERG) - Uber Technologies reported declining revenue in the fourth quarter, showing that demand for food delivery isn't making up for a falloff in ridership. Sales dropped 16 per cent to US$3.17 billion (S$4.2 billion), short of an average of analyst estimates compiled by Bloomberg. Performance in Canada, Latin America and the US was particularly dismal. The stock was down about 4 per cent in extended trading. Despite the shortfall, Uber narrowed its loss in the quarter that ended in December, riding a wave of deals that shed some of its more fanciful pursuits. It turns out that autonomous vehicles and flying cars weren't helping Uber achieve its goal of a quarterly profit before interest, taxes and other expenses by the end of this year. In the fourth quarter, when it sold those two business units to star-ups in exchange for equity, Uber posted an adjusted loss of US$454 million, beating analysts' estimates. In its quarterly results released on Wednesday (Feb 10), Uber said it's still on track to turn an adjusted profit some time this year. And it disclosed yet another asset sale, confirming a Bloomberg report in September that it was selling part of its stake in th...

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Uber abandons pursuit of self-driving cars, sells unit to Aurora

elean
4 minutes

NEW YORK (BLOOMBERG) - Uber Technologies sold its self-driving car division to Aurora Innovation and took a stake in the start-up, pulling back from its vision for a fleet of autonomous taxis to focus on turning a quarterly profit next year after the pandemic crushed revenue. The deal will value Aurora at US$10 billion (S$13.4 billion), according to people familiar with the talks. In exchange for investing US$400 million in Aurora, Uber will get a 26 per cent ownership stake in the company. That number increases to 40 per cent when counting the stakes held by the employees and investors of Uber's autonomous driving division. Uber chief executive officer Dara Khosrowshahi and one other yet-to-be-named person representing Uber will join Aurora's board. The price tag is a comedown for Uber, whose self-driving division, Advanced Technologies Group (ATG), raised money last year at a US$7.25 billion valuation. The agreement with Aurora values the unit at just US$4 billion, following Uber's investment. The deal, expected to close during the first quarter, also guarantees that when Aurora releases its self-driving vehicles, they'll launch on Uber's network. Shares of Uber fell were mostly ...

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Uber sees $1.5 billion loss on ride-hailing revenue plunge

elean
2 minutes

SAN FRANCISCO (AFP) - Uber on Thursday (Nov 5) reported that it lost US$1.1 billion (S$1.5 billion) in the recently ended quarter as the pandemic walloped its ride-hailing business, but boosted its food delivery service. Revenue in Uber's mobility unit was down 53 per cent from the same quarter last year, while money taken in from drivers delivering restaurant meals or other orders more than doubled, according to the San Francisco-based company. "Despite an uneven pandemic response and broader economic uncertainty, our global scope, diversification, and the team's tireless execution delivered steadily improving results," chief executive Dara Khosrowshahi said in an earnings release. Uber shares that had been buoyed by the triumph of an initiative that lets drivers remain classified as independent contractors in California sank nearly three percent in after market trades. Demand for rides directly correlates to pandemic lock-down restrictions in cities, and Uber's mobility and deliver units are positioned to take advantage of returns to pre-virus lifestyles, Mr Khosrowshahi said in an earnings call. "Uber is becoming the go-to app for getting around or getting something delivered yo...