Uber surges 43% after its CEO says it has enough cash to get through the coronavirus pandemic (UBER)

AP Photo/Mark Lennihan

• Uber skyrocketed as much as 43% Thursday after CEO Dara Khosrowshahi said on a call with investors that the company is in a solid position to weather the coronavirus crisis. 
• Uber’s balance sheet is “incredibly strong,” he said, adding that at the end of February, Uber had $10 billion in unrestricted cash.
• While Uber’s rides segment has declined 60% to 70%, Uber Eats has seen growth as people stay home, Khosrowshahi said. 
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Uber stock is skyrocketing Thursday after its CEO said that the company’s balance sheet is in a solid place to get through the coronavirus crisis, and that it’s seeing growth in some business areas even as rides slip due to people staying home. 

Shares of Uber gained as much as 43% to $21.24 during the day Thursday. The gain is a reversal from all-time lows the company saw this week amid investor panic due to the coronavirus pandemic. 

“We are well positioned to weather this,” Uber CEO Dara Khosrowshahi said on the Thursday call. 

Uber’s balance sheet is “incredibly strong,” he said, adding that at the end of February, Uber had $10 billion in unrestricted cash. “We have plenty of liquidity on the books which positions us to come out of this crisis strong and capable.”

The company’s rides segment is seeing a 60% to 70% decline in areas that have been hit hardest by the coronavirus outbreak, Khosrowshahi said on the call. At the same time, the company is seeing growth in Uber Eats, its food delivery business, he said. 

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“Our Eats Business has become an important resource right now, especially by restaurants hit by containment policies,” said Khosrowshahi. “Even in Seattle it’s still growing.”

The company believes that the worst of the impact and the recovery is already being seen in some places, according to Khosrowshahi. “Once things start moving, Uber will, too,” he said.  Uber did not update its earnings guidance on Thursday, citing the fluid situation at hand. 

Shares of competitor Lyft also gained as much as 32% on Thursday, even though the company has not given any additional information on how it’s handling the coronavirus pandemic. 

Uber has shed roughly 50% year-to-date through Wednesday’s close.

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