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Uber Plans to Roll Out Tech to Check Face Mask Wearing During Virus Pandemic

Uber Technologies Inc. (UBER) is reportedly working on a technology to detect if drivers and riders are wearing face masks as more and more countries are implementing mandatory safety and health measures to contain the spread of the coronavirus.

The ride-hailing company plans to demand from drivers and riders to wear face masks or other coverings when using the service in certain countries, including the U.S., according to a CNN Business report. Company executives approved the new policy last week, according to a person familiar with the matter. The requirement is expected to be rolled out in the coming weeks.

The move comes as Uber is preparing to a return back to operating its business after stay-at-home orders have significantly weakened ride-sharing and transportation needs. Rival Lyft Inc. (LYFT) announced last week that it plans to lay off 982 employees, or 17% of its workforce as the U.S. ride-hailing company seeks to lower operating costs and adjust cashflows to cope with economic hardships resulting from the impact of the coronavirus pandemic.

“As countries reopen, Uber is focused on safety and proceeding with caution. Today, we continue to ask riders to stay home if they can, while shipping safety supplies to drivers who are providing essential trips,” said Uber’s head of safety communications Andrew Hasbun. “At the same time, our teams are preparing for the next phase of recovery, where we will all have a role to play.”

In April, Uber started shipping disinfectant sprays to some drivers and began distributing millions of ear-loop face masks to active drivers and delivery people around the world. Uber has more than 91 million active monthly users and 3.9 million drivers operating in 63 countries.

Shares have almost risen back to their start of the year level trading at $28.39 after dropping as low as $14.82 on March 18.

Needham & Co. analyst Brad Erickson last week reiterated a Buy rating on the stock with a $36 price target after NYC checks showed share gains for Uber Eats.

“Share gain commentary borne out of delivery capacity likely to new diners was encouraging not only for NYC but as a proxy for the rest of Uber Eats’ markets,” Erickson said. “We adjust estimates to reflect a more conservative & sequentially appropriate trajectory for Rides’ recovery from the likely 2Q trough partially offset by higher Eats estimates”.

The remainder of Wall Street analysts are mostly upbeat on Uber’s stock assigning a Strong Buy consensus rating as 26 have Buys, 2 have Holds and 1 has a Sell. The $41.64 average price target projects shares will surge 47% in the next 12 months. (See Uber’s stock analysis on TipRanks).

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Sharon Wrobel
Sharon Wrobel is a journalist and writer with two decades of experience covering financial news in the U.S., Europe and the Middle East. Her work has appeared in global publications including The Financial Times, Bloomberg and The Jerusalem Post.

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