Uber (UBER) to accept cryptos if exchange costs, climate issues resolve

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Uber (UBER) to accept cryptos if exchange costs, climate issues resolve

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 Uber (UBER) to accept cryptos if exchange costs, climate issues resolve
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 Highlights

  • Uber said it will accept cryptocurrency in the future.
  • It said the high transaction cost in the exchange makes it unviable for adoption now. 
  • Uber Technologies (UBER) stock fell 37.8% in one year.

Ride-hailing operator Uber Technologies, Inc. (NYSE: UBER) CEO Dara Khosrowshahi said that the company will accept cryptocurrency in the future. 

In an interview with Bloomberg TV on Friday, Khosrowshahi said, it is “not the right point”, stressing the current transaction costs in the crypto exchanges are too high. He added that the negative environmental impact of the mining process is also a factor. 

 “As the exchange mechanism becomes less expensive and becomes more environment friendly, I think you will see us leaning into crypto a little bit more,” he told the paper. 

Uber (UBER) stock was trading 4.46% down to US$36.065 at 11:50 am ET. It has been on the decline after its guidance on Thursday fell short of expectations. On Feb 10, it fell over 6%. 

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The San Francisco, California-based company provides technology to match riders with drivers, people with food delivery providers and restaurants, and shippers with carriers. Its current market capitalization is US$70.4 billion.

After going public in 2019, its business has seen many ups and downs. The stock fell sharply after the pandemic struck as people stayed at home, and the ride business came to a pause. 

But its food delivery business proved a savior. After touching US$14.82 on March 18, 2020, the stock bounced back to US$60.35 in June 2021. 

It reported strong fourth-quarter and full-year 2021 results released on Thursday. 

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 Uber Technologies may accept cryptocurrency in future, says UBER CEO.

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Quarterly Results 

Its gross booking grew 51% YoY to US$25.9 billion in the fourth quarter. The revenue increased by 83% YoY to US$5.8 billion, and the net income attributable to the company came in at US$892 million or US$0.44 per share diluted in the period. 

During the quarter, the trips grew 23% YoY to 1.77 billion (around 19 million daily trips).  

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Despite the revenue and income boost, the stock fell after the results, attributed to its less-than-expected profit forecast by 2024. But Andrew Macdonald, senior VP for mobility division, expressed optimism, saying there are many customers to tap in the global market.

Uber has recently announced acquiring Car Next Door, a peer-to-peer car-sharing platform. 

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 Bottomline

The cost of ride-hailing services has increased in recent months due to the low availability of drivers as demand rises. Many drivers had left Uber during the pandemic.

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