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Uber Launches Grocery Delivery in Latin America & Canada
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Uber Technologies, Inc. (UBER - Free Report) is launching grocery-delivery services in some Latin American and Canadian cities as demand for grocery deliveries surges amid the coronavirus pandemic. The company has witnessed a 176% rise in grocery orders since February.
Uber has partnered with Cornershop, a Chilean grocery-delivery startup, for the services. We remind investors that last year Uber had entered into an agreement to acquire a majority stake in Cornershop. The transaction is expected to close in a few days upon regulatory approval in Chile. The grocery-delivery service marks Uber’s first product integration with Cornershop.
The service, expected to be rolled out in the United States later this month, can be availed of through the Uber and Uber Eats apps. Orders placed on the apps will be facilitated and delivered by Cornershop team members. Similar to other services on Uber, customers can track the status of their orders.
After initially launching the services in some cities in Brazil, Chile, Colombia, Peru and Canada, Uber plans to extend the same to the rest of the world later this year.
While coronavirus has led to a downturn in Uber’s core ride-hailing business (first-quarter gross bookings declined 5% year over year for the first time ever), the same is causing a surge in its food-delivery business — Uber Eats — as people prefer to stay home and order food online. Gross bookings from Eats augmented 52% year over year in the first quarter of 2020, while revenues from the unit jumped 53%. Moreover, the company revealed that second-quarter bookings on Uber Eats have soared more than 100% year over year.
Given the slump in demand in rides business, Uber’s move to bolster its delivery business is laudable. To this end, the company recently entered into a definitive agreement to acquire Postmates, its smaller rival in the food delivery business. Subject to approval, the transaction is expected to close in the first quarter of 2021. The Postmates deal follows Uber’s failed attempt to acquire Grubhub , which is now set to be purchased by Just Eat Takeaway.com.
While CooTek Cayman has an impressive earnings history having outperformed the Zacks Consensus Estimate in three of the past four quarters, shares of Tencent have surged more than 47% in a year’s time.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
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Uber Launches Grocery Delivery in Latin America & Canada
Uber Technologies, Inc. (UBER - Free Report) is launching grocery-delivery services in some Latin American and Canadian cities as demand for grocery deliveries surges amid the coronavirus pandemic. The company has witnessed a 176% rise in grocery orders since February.
Uber has partnered with Cornershop, a Chilean grocery-delivery startup, for the services. We remind investors that last year Uber had entered into an agreement to acquire a majority stake in Cornershop. The transaction is expected to close in a few days upon regulatory approval in Chile. The grocery-delivery service marks Uber’s first product integration with Cornershop.
The service, expected to be rolled out in the United States later this month, can be availed of through the Uber and Uber Eats apps. Orders placed on the apps will be facilitated and delivered by Cornershop team members. Similar to other services on Uber, customers can track the status of their orders.
After initially launching the services in some cities in Brazil, Chile, Colombia, Peru and Canada, Uber plans to extend the same to the rest of the world later this year.
While coronavirus has led to a downturn in Uber’s core ride-hailing business (first-quarter gross bookings declined 5% year over year for the first time ever), the same is causing a surge in its food-delivery business — Uber Eats — as people prefer to stay home and order food online. Gross bookings from Eats augmented 52% year over year in the first quarter of 2020, while revenues from the unit jumped 53%. Moreover, the company revealed that second-quarter bookings on Uber Eats have soared more than 100% year over year.
Given the slump in demand in rides business, Uber’s move to bolster its delivery business is laudable. To this end, the company recently entered into a definitive agreement to acquire Postmates, its smaller rival in the food delivery business. Subject to approval, the transaction is expected to close in the first quarter of 2021. The Postmates deal follows Uber’s failed attempt to acquire Grubhub , which is now set to be purchased by Just Eat Takeaway.com.
Zacks Rank & Key Picks
Uber carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Internet - Services industry are CooTek Cayman Inc (CTK - Free Report) and Tencent Holding Ltd (TCEHY - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
While CooTek Cayman has an impressive earnings history having outperformed the Zacks Consensus Estimate in three of the past four quarters, shares of Tencent have surged more than 47% in a year’s time.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>