Categories Earnings

Uber faces Greek dilemma while Grab deal faces hurdles

Uber will be suspending its operations in Athens, Greece following the passage of a new stricter regulation, which requires the start and end of all rides to be in the fleet partner’s headquarters, and also the creation of a digital registry detailing all ride-sharing services and passengers.

Uber runs the UberX service with professional licensed drivers and the UberTAXI service with taxi drivers in Athens. Ever since its launch in 2011 in Europe, Uber has faced opposition from local taxi drivers who accused it of poaching their business.

Uber said the new regulations would affect its services and therefore it is suspending operations until it can analyze the situation and come up with a suitable solution.

Meanwhile, Uber’s sale of its Southeast Asian operations to Grab is undergoing regulatory review, and there are a few hurdles to be crossed. Some experts believe if Grab were to adopt restrictions on pricing and tighter regulations the deal would receive approval. There is also a chance that Uber could exit the region thus giving Grab the lion’s share of the market. Uber has already started moving out its operations in the area.

Some believe the deal might not face too much difficulty regarding approval as there are plenty of new entrants in the market which provide customers with plenty of options. If the deal fails to go through, Uber might exit Singapore and Grab would be the leader in that market.

A Grab-Uber entity would be a strong one from a competitive point of view with an edge over new market entrants.

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top