Californian ride-hailing pioneer Uber shares soar after CEO confirms large war-chest

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Californian ride-hailing pioneer Uber shares soar after CEO confirms large war-chest

On Thursday, the 19th of March 2020, the San Francisco, CA-based ride-sharing pioneer, Uber Technologies’ shares’ prices spacedived as much as 44 per cent after the company Chief Executive Dara Khosrowshahi had assured that the company had sufficient cash to see through the period of coronavirus crises, while Khosrowshahi had also hinted a notable scale of recovery in some part of Uber’s business which in effect had added to further bullish wing to investors’ optimism.

As a matter of fact, the money draining ride-hailing giant which had diversified its businesses by many folds over the recent past including its online food ordering and deliveries, shrugged off more than a third of its market valuation since its IPO of May 10th 2019 when the company had resumed trading at $42 per share.

Nonetheless, in a dramatic turn of event, shares’ prices of Uber Technologies wrapped up Thursday’s (March 19th) market 38.26 per cent higher to $20.49 per share after rising much as 30 per cent in pre-market trading.

Meanwhile, referring to a raft of contingency measures including a huge war-chest in hand to trounce the coronavirus’ financial fallouts, Uber Technologies Chief Executive, Khosrowshahi said in a call with the analysts shortly before Thursday (March 19th) market’s opening bell, “We are very fortunate to have a strong cash position with about $10 billion of unrestricted cash as of end of February.

In any crisis, liquidity is key. Our Eats business is an important resource right now, especially for restaurants that have been hurt by containment policies. In the United States, our F&B sales team is now closing two-and-half times the number of new restaurants we normally do per day”.