April 25, 2024

Uber Shares to Surge after Announcing Resumption of Shared Rides in Two Major Cities

Uber has recently made an announcement in regards to the resumption of shared rides. For now, the announcement comes in favor of two major cities within the United States of America. The first city in the United States they are planning to resume ride-sharing is San Francisco and the second one is New York.

Uber Resumes Ride Sharing after Two Years

It had been more than a couple of years since ride-sharing had been ceased by Uber in a handful of cities. The particular feature is known for offering riders the opportunity to share the same vehicle with other riders.

The condition for ride-sharing is that the passengers should be traveling in the same direction or have the same destination.

Uber has announced that apart from San Francisco and New York City, they have also resumed the ride-sharing feature in other cities. These cities include Pittsburgh, Indianapolis, Oregon, Portland, San Diego, Phoenix, Chicago, and Los Angeles.

Uber has also announced that it is planning to resume its ride-sharing services in other cities in the United States as well. It plans to resume its services in the summer period.

Reason for the Suspension of Ride Sharing

It was back in March of 2020 when Uber announced the suspension of the ride-sharing features in the United States. The ride-hailing company announced that it had made the decision of suspending its services due to the COVID-19 pandemic.

Due to the ravaging spread of the COVID-19 pandemic, Uber had to make the decision of suspending its services. While other major ride-hailing services such as Lyft, resumed their services in major cities of the United States last year, Uber decided to wait a while.

Now that the situation has become normal throughout the country and no more lockdowns are in place, Uber has decided to resume ride sharing.

Ride-Sharing Resumed at a Critical Time

Initially, many investors and analysts criticized Uber’s decision of not resuming the ride-sharing feature back in late 2021. Turns out, the decision has worked out in favor of Uber.

Uber announced that due to the rise in the cost of fuel and other factors, they decided to resume the ride-sharing feature. They are confident that the resumption of the ride-sharing feature would prove extremely useful for riders during these hard times.

According to analysts, this is a very tactical move made by Uber. The move of enabling shared riding features is going to prove extremely beneficial for Uber and it may help boost Uber’s share prices in the upcoming months.

At the time of writing, Uber’s share prices are at $21.50 having experienced a -56.17% change in the 12-month period.

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