Ride-hailing company also aims to sell shares in other non-strategic assets in tough market
A screen displays trading information for ride-hailing giant Didi Global on the floor of the New York Stock Exchange in New York City, US, in this December 3 2021 file photo. Picture: REUTERS/BRENDAN MCDERMID
The US firm pulled out of China in 2016 after burning through more than a billion dollars a year due to a price war with Didi. It eventually sold its China operations to Didi in exchange for a stake.“Our Didi stake we don’t believe is strategic. They’re a competitor. China is a pretty difficult environment with very little transparency,” Uber CEO Dara Khosrowshahi said.
He said many of the companies in which Uber has a stake have recently gone public and are still subject to a lock-up period — when investors at the time of listing cannot sell stock — adding Uber will continue to hold some stakes for strategic reasons.Uber shares rose 4.3% to close at $37.26 after Khosrowshahi’s remarks on Tuesday. He also said Uber last week had its best week yet in terms of companywide gross bookings at its ride-hail and food delivery operations.Uber had about $13.
Uber’s operational business last quarter for the first time achieved profitability on an adjusted earnings basis, but its Didi stake drove a $2.4bn net loss in the third quarter.
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