Tag: Ubers

DOJ antitrust division reviewing Uber’s plans to buy Postmates

  • The DOJ is taking a closer look at Uber’s plans to buy Postmates, Uber disclosed in a regulatory filing Friday.
  • The “second request,” as it’s called, puts the deal on hold indefinitely until both companies “substantially comply” with the government’s request for more details and it gives the deal a green light.
  • But the DOJ’s request signals it’s “concerned about the deal,” Sam Weinstein, a former DOJ antitrust lawyer, told Business Insider.
  • Uber pivoted to buy Postmates after merger talks with Grubhub reportedly fell through over similar  antitrust concerns as the platform faces increased scrutiny from lawmakers.
  • Visit Business Insider’s homepage for more stories.

Uber’s plans to expand its food delivery business by acquiring Postmates have hit a roadblock.

In a regulatory filing Friday, Uber disclosed that the US Department of Justice has issued a “second request” to both companies, temporarily halting the deal while the government gathers more information.

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Uber’s Mideast Business Careem Sees Speedier-Than-Expected Recovery | Investing News

DUBAI (Reuters) – Uber Technologies Inc-owned

Middle East business Careem is seeing its ride service recover more quickly than expected from the coronavirus crisis, while its delivery business is larger than before the pandemic.

Careem, which mainly operates in the Middle East, had originally forecast that its ride service would recover at the end of 2021, but now expects it to rebound earlier in the year with some markets already close to pre-COVID levels.

“We are seeing a strong recovery in the rides business and we are seeing a pretty significant acceleration in the deliveries business,” Careem CEO Mudassir Sheikha told Reuters.

“The delivery business is significantly larger than what it was pre-COVID and continues to grow quite strongly, double digit month on month,” he said.

Careem, which says it has 1.7 million drivers in 13 countries, has said it has been encouraged by a better than expected pickup in

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German Startup Sennder Acquires Uber’s European Freight Business | Investing News

BERLIN (Reuters) – German freight startup sennder said on Wednesday it had acquired Uber’s

European freight business in an all-stock deal that will see the U.S. ride hailing company become a minority shareholder.

The deal marks the second acquisition this year by Berlin-based sennder, a digital freight forwarder founded in 2015 that specialises in full-truck loads, as it seeks to extend its lead in Europe.

“This acquisition strengthens our position as Europe’s number one digital logistics provider,” said David Nothacker, CEO and co-founder of sennder.

For Uber, which only entered the German freight market in July 2019, the deal will extend its reach in Europe while the alliance with sennder would extend to offering advanced freight logistics services in the United States and Canada.

sennder is one of a number of logistics-focused startups in the bustling Berlin tech scene that has sought to modernise an industry dominated by family-owned trucking

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The Emperor Has No Clothes – Uber’s Business Model Is Broken (NYSE:UBER)

We first warned investors about Uber’s (NYSE:UBER) unrealistic valuation before its IPO in April 2019: “Uber’s IPO Valuation Makes No Sense.” After an underwhelming IPO and its firsts earnings report as a public company, we warned again in “Uber Gives Investors the Worst of Both Worlds.” Now, with the stock trading well below its IPO price, and the firm feeling the brunt of the COVID-19 shutdowns across the world, some investors may think there is value in Uber. Think again. Uber is this week’s Danger Zone pick.

We think those with fiduciary responsibilities need to consider just how much risk they take by owning UBER at current levels. This report shows investors of all types just how extreme the risk in UBER is based on:

  • Recent legislation could break an already weak business model
  • Delivery market share is stagnant (excluding acquisitions), and rideshare is falling
  • The path to profitability remains
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