According to reports, SoftBank, a technology investment firm, is selling roughly one-third of its stake in Uber. SoftBank is selling approximately $2 billion (£1.44 billion) in shares to help offset losses from its investments in Chinese ride-hailing company Didi and other ventures.
Didi’s stocks have plummeted in value since its debut in the US market less than a month ago.
This follows a series of actions by Chinese authorities that have alarmed investors. The SoftBank Vision Fund will sell 45 million shares of Uber, reducing its stake in the company by roughly one-third.
According to CNBC, the Japanese technology investment firm has lost a total of $4 billion on its stake in Chinese ride-hailing firm Didi.
According to Reuters, SoftBank’s decision to sell its Uber stake was completely unconnected to the decline in Didi’s value, and it simply felt now was a good time to take some profits.
SoftBank invested approximately $7.6 billion in Uber in 2018, followed by an additional $333 million the following year.
Didi’s largest shareholder, SoftBank, owns more than 20% of the company.
After selling its operations in China to its local rival five years ago, Uber now owns nearly 13 percent of Didi.
Didi shares have fallen nearly 40% since they began trading on the New York Stock Exchange on June 30.
However, Uber’s services include ride-hailing, food delivery (Uber Eats), package delivery, couriers, freight transportation, and electric bicycle, and motorized scooter rental through a partnership with Lime. The company is headquartered in San Francisco and operates in over 900 cities worldwide.
According to reliable sources, Uber has a 71 percent market share in ride-sharing and a 22 percent market share in food delivery in the United States.
Source: Reuters
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