Home » Electronic News » Uber plans to sell part of Didi stake, SoftBank participates in discussions

Uber plans to sell part of Didi stake, SoftBank participates in discussions

Posted by: Yoyokuo 2022-08-04 Comments Off on Uber plans to sell part of Didi stake, SoftBank participates in discussions

On September 17, 2020, local time, according to Bloomberg News, Uber plans to sell part of its stake in Didi. It is reported that Uber’s stake in Didi is worth a total of $6.3 billion, and Uber CEO Dara Khosrowshahi is currently discussing the matter with Didi and SoftBank.

The insider said:

Uber’s decision to divest its stakes in other companies is aimed at boosting its stock price, raising capital and consolidating its business.

On August 1, 2016, Didi officially announced that it had reached a strategic agreement with Uber Global – Didi will acquire all of Uber China’s brand, business, data and other assets.

At the same time, according to the strategic agreement between the two parties, Didi and Uber Global will hold each other’s shares and become each other’s minority shareholders: Uber Global will hold 5.89% of Didi’s equity, which is about 17.7% of the economic rights and interests, and the rest of Uber China in China. Shareholders will receive a 2.3% economic interest.

It is reported that, as one of the main shareholders of the two companies, in the discussion of selling Didi’s stake, one plan proposed by SoftBank is to cooperate with other investors to obtain the equity held by Uber. And Didi itself is unlikely to buy its own stake.

Both Uber and Didi declined to comment at this time, Bloomberg said.

In fact, Uber is not only planning to sell Didi’s stake. Not long ago, Uber agreed to sell its European trucking business and part of its stake in Yandex, one of Russia’s key online service portals. Uber is currently in discussions to sell a stake in Grab, a Southeast Asian ride-sharing company.

1

Behind the sale

Uber sells shares without a set of numbers.

Uber’s fiscal 2020 Q2 financial report released last month showed that its total order volume was US$10.224 billion, down 35% year-on-year; monthly active users were 55 million, down 44% year-on-year; and the total number of trips was 737 million, down 56% year-on-year. Overall, mobility revenue fell 67%.

Looking back at Uber’s 2019 fiscal year Q1 financial report, which is Uber’s first financial report since its listing, the total order volume was 14.649 billion US dollars, the monthly active users were 93 million, and the total number of trips was 1.55 billion.

It can be seen that Uber has a lot of problems in terms of profitability.

In terms of stock price, Uber shares fell about 3 percent to $36.41 on Thursday, well below the $45 per share price when it went public on May 10, 2019.

In contrast, Didi, although its stock price has been affected by the epidemic, its valuation has reached $56 billion under the shared travel boom.

In addition, Uber has also started laying off employees under the epidemic-in May this year, Uber announced that it would lay off employees globally.

Soon after, Uber India announced it was laying off 600 employees, or 25% of its local workforce.

Pradeep Parameswaran, president of Uber India and South Asia, said through a spokesperson:

The 600 employees who were laid off included driver, rider customer service and other functional positions.

Not only that, Uber’s decision to gradually close its artificial intelligence laboratory has also lost a lot of AI talents. For example, on September 1, Uber’s chief scientist Zoubin Ghahramani posted on Twitter that he had left Uber.

 

The Links:   DMF5005N-AAE-CO LB170E01-SL01 IGBT