{"id":103535,"date":"2020-11-03T02:23:00","date_gmt":"2020-11-02T23:23:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/uber-will-take-a-financial-hit-no-matter-what-california-voters-decide\/"},"modified":"2020-11-03T02:23:00","modified_gmt":"2020-11-02T23:23:00","slug":"uber-will-take-a-financial-hit-no-matter-what-california-voters-decide","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/uber-will-take-a-financial-hit-no-matter-what-california-voters-decide\/","title":{"rendered":"#\n  Uber will take a financial hit no matter what California voters decide"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a413c6b6ad1f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a413c6b6ad1f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/uber-will-take-a-financial-hit-no-matter-what-california-voters-decide\/#Earnings_preview_State_ballot_measure_will_lead_to_more_costs_long-term_for_Uber_while_analysts_have_low_expectations_for_rides_but_are_bullish_on_delivery_in_the_short_term\" >Earnings preview: State ballot measure will lead to more costs long-term for Uber, while analysts have low expectations for rides but are bullish on delivery in the short term<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/uber-will-take-a-financial-hit-no-matter-what-california-voters-decide\/#Uber_is_scheduled_to_report_third-quarter_earnings_Thursday\" >Uber is scheduled to report third-quarter earnings Thursday.<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/uber-will-take-a-financial-hit-no-matter-what-california-voters-decide\/#What_to_expect\" >What to expect<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/uber-will-take-a-financial-hit-no-matter-what-california-voters-decide\/#What_analysts_are_saying\" >What analysts are saying<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/uber-will-take-a-financial-hit-no-matter-what-california-voters-decide\/#Levi_Sumagaysay\" >Levi Sumagaysay<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Uber will take a financial hit no matter what California voters decide<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Earnings_preview_State_ballot_measure_will_lead_to_more_costs_long-term_for_Uber_while_analysts_have_low_expectations_for_rides_but_are_bullish_on_delivery_in_the_short_term\"><\/span>\n  Earnings preview: State ballot measure will lead to more costs long-term for Uber, while analysts have low expectations for rides but are bullish on delivery in the short term<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000050138\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:63.59375000000001%;\" data-mobile-ratio=\"63.59375000000001%\" data-layout-ratio=\"63.59375000000001%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-243943?width=140&amp;size=1.5724815724815724 140w,\nhttps:\/\/images.mktw.net\/im-243943?width=540&amp;size=1.5724815724815724 540w,\nhttps:\/\/images.mktw.net\/im-243943?width=620&amp;size=1.5724815724815724 620w,\nhttps:\/\/images.mktw.net\/im-243943?width=700&amp;size=1.5724815724815724 700w,\nhttps:\/\/images.mktw.net\/im-243943?width=860&amp;size=1.5724815724815724 860w,\nhttps:\/\/images.mktw.net\/im-243943?width=1260&amp;size=1.5724815724815724 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-243943?width=620&amp;size=1.5724815724815724\" data-enlarge=\"https:\/\/images.mktw.net\/im-243943?width=1260&amp;size=1.5724815724815724\" alt=\"\" title=\"Uber is scheduled to report third-quarter earnings Thursday. \"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Uber_is_scheduled_to_report_third-quarter_earnings_Thursday\"><\/span>Uber is scheduled to report third-quarter earnings Thursday. <span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            AFP via Getty Images<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       When Uber Technologies Inc. reports financial results two days after Election Day, it may not know the fate of its business in its home state, but its bottom line will be affected either way.<\/p>\n<p> Uber<br \/>\n        UBER,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211348248\/composite\" class=\"positive\">+4.19%<\/bg-quote><span>,<\/span><br \/>\n       ride-hailing rival Lyft Inc.<br \/>\n        LYFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208999293\/composite\" class=\"positive\">+7.31%<\/bg-quote><br \/>\n       and other <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>-based platforms are attempting to exempt themselves from a California law that would require them to treat their drivers and delivery workers as employees by backing  Proposition 22 in Tuesday\u2019s election. The result could have broad repercussions and upend the gig economy, which relies on independent contractors. <\/p>\n<div class=\"paywall\">\n       A Capitol Weekly <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/capitolweekly.net\/an-early-voting-survey-of-the-ballot-propositions\/\" class=\"icon none\">poll<\/a> of mail-in voters shows the initiative ahead 52% to 48%, and a UC Berkeley Institute of Governmental Studies poll released last week showed Prop. 22 was ahead 46% to 42%. But ballots continue to pour in ahead of Election Day, as the state sees the highest percentage of potential voters registered before an election in 80 years, according to the California secretary of state\u2019s office.<\/p>\n<p><strong>More on Prop 22: How Uber and Lyft\u2019s business model could be changed on Election Day<\/strong><\/p>\n<p>Whether Prop. 22 passes or fails, Uber faces increased costs: The initiative offers drivers guaranteed minimum earnings and some health-care benefits. If voters reject the measure, Uber will likely have to classify drivers as employees by the end of the year because of a court-ordered injunction for the company to comply with state law. <\/p>\n<p><strong>See: Uber and Lyft told to classify drivers as employees less than two weeks before California votes on the issue<\/strong><\/p>\n<p>Analysts are expecting \u201ca 25% to 35% increase in Uber\u2019s operating costs in markets where that type of law is enforced,\u201d  D.A. Davidson analyst Tom White told MarketWatch, adding that those costs would be less if some sort of hybrid approach \u2014 like what Prop. 22 is trying to establish \u2014\u00a0wins out.<\/p>\n<p>\u201cI think the writing\u2019s on the wall,\u201d White said. \u201cThere\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly going to be increasing pressure nationwide, maybe even globally, to start providing more employee-like benefits and protections for gig-economy workers.\u201d<\/p>\n<p>Cowen analysts wrote in a note to investors that they believe \u201cnational implications for the law\u2026 are likely to play out over the next couple of years.\u201d<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Beyond what happens on the worker-classification front when Uber reported third-quarter earnings Thursday, analysts and investors will be looking at gross bookings and what Uber says about the progress of the ride-hailing rebound. COVID-19 cases are rising in much of the nation, and officials in England, France, Italy, Germany and Spain have again imposed lockdowns or curfews.<\/p>\n<p>Also key will be how Uber Eats fared. Last quarter, the company reported that revenue from its food-delivery business surpassed ride-hailing revenue for the first time because of the effects of the coronavirus pandemic, which has curtailed <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> and business activity but has boosted the delivery industry. In addition, Uber Eats recently expanded into grocery delivery, another sector that\u2019s benefiting from the pandemic.<\/p>\n<p>White pointed out that delivery is \u201cmore of a money loser than ride- sharing,\u201d but that if lockdowns continue or resume, the Eats business will of course benefit. Uber is not profitable overall, but it is promising to achieve adjusted profitability in 2021.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_to_expect\"><\/span><strong>What to expect<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p><strong>Earnings:<\/strong>\u00a0Analysts surveyed by FactSet on average expect Uber to post a loss of 60 cents a share, or $1 billion, compared with the company\u2019s nearly $1.2 billion loss in the year-ago period. They expect an adjusted loss of 50 cents a share. Estimize, which gathers estimates from analysts, hedge-fund managers, executives and more, is expecting a loss of 63 cents a share.<\/p>\n<p><strong>Revenue:<\/strong>\u00a0Analysts on average expect revenue of $3.07 billion, compared with $3.8 billion in the year-ago quarter, according to FactSet. Estimize is guiding for $3.13 billion.<\/p>\n<p><strong>Stock movement:\u00a0<\/strong>Uber shares have gained after earnings three times and declined three times, with the worst result a 9.8% drop after last year\u2019s third-quarter report. The stock is up 16.8% this year through Monday\u2019s session, while the S&amp;P 500 index\u00a0<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+1.23%<\/bg-quote><br \/>\n      \u00a0has gained about 1.2%.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_analysts_are_saying\"><\/span><strong>What analysts are saying<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Uber management \u201cmay be exaggerating the bounceback of countries, expectations for business profitability in the next few years, and their Uber Eats delivery model,\u201d Valens Research said in a note to investors in early October.<\/p>\n<p>Other analysts are bullish on Uber\u2019s delivery business. Cowen expects the delivery business to have doubled year over year, while RBC Capital Markets expects that number to have grown 130% year over year. <\/p>\n<p>Both Cowen and RBC Capital analysts estimate gross bookings of rides to have fallen 50% in the quarter compared with the year-ago period.<\/p>\n<p>Out of 35 analysts surveyed by FactSet, 26 have a buy rating on Uber stock, while there are three who have a hold rating, three say sell and three rate the stock at overweight. The average price target as of Monday was $41.18, when the stock closed at $34.81, up 4.25%<strong>.<\/strong> <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Levi Sumagaysay\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Levi_Sumagaysay\"><\/span>Levi Sumagaysay<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21004575-02D4-D4B5-4572-DC3DAAB80ACE%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Uber will take a financial hit no matter what California voters decide &#8221; Earnings preview: State ballot measure will lead to more costs long-term for Uber, while analysts have low expectations for rides but are bullish on delivery in the short term Uber is scheduled to report third-quarter earnings Thursday. AFP via Getty Images&#8230;<\/p>\n","protected":false},"author":1,"featured_media":103536,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-103535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/103535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=103535"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/103535\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/103536"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=103535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=103535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=103535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}