Jim Cramer: CDC Car Recommendation Could Hurt Lyft, Uber
Are you using Uber?
Uber's global rides business is still down 70% compared to a year ago, the company said at an investor conference on Wednesday.
Speaking with a Bank of America analyst, Uber CEO Dara Khosrowshahi said that while Uber has seen incremental improvements since April, the timing of a more robust recovery in its rides business will vary by locality.
Khosrowshahi's comments echoed a filing earlier this week by rival Lyft, who said that its rides business had improved for seven consecutive weeks, but was still down 70% year over year.
However, unlike Lyft, Uber has Uber Eats.
And in the meantime, Uber is doubling down on Eats and on possibilities in grocery delivery, with Khosrowshahi arguing that Uber can stake out good margins in both of those over time. The Uber CEO told investors on Wednesday that Eats had more than doubled year-over-year as of May.
Jim Cramer weighed in to say that the CDC's recommendation that people own their own cars could both negatively impact the environment and the ride-sharing stocks.
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