Uber CEO: Coronavirus outbreak ‘not material in any way’ to our overall portfolio of businesses

FAN Editor

Uber CEO Dara Khosrowshahi told CNBC on Friday that the doesn’t anticipate the fast-spreading coronavirus to impact its overall business.

“We’re not seeing a significant effect on the business overall,” Khosrowshahi said on “Squawk Box.”

Business in North Asia and Hong Kong are down significantly, he said, as people self-quarantine to avoid the deadly virus and travel restrictions are imposed.

“For example, business in Hong Kong, airport business is down pretty significantly, from an overall standpoint with our portfolio it’s not material in any way,” he added.

Health officials around the world are also scrambling to stop the spread of the new virus, which was first discovered Dec. 31 in the Chinese city of Wuhan in Hubei province.

China’s National Health Commission on Thursday raised its confirmed coronavirus cases in the country to 31,161. The death toll rose to 636, with one additional fatality in the Philippines and one in Hong Kong.

Over the past few weeks, American companies with operations in China have issued warnings to investors as the fast-spreading virus hits demand.

Nike on Tuesday said it closed half of its stores in China and added that it will have a “material impact” on its operations across the country. Tesla has also temporarily shuttered its stores in mainland China, according to an online post from a company sales employee. On Thursday, Yum Brands warned that its 2020 results could fall short of its long-term outlook as the outbreak weighs on sales in China.

After-the-bell on Thursday, Uber reported better-than-expected fourth-quarter financials, which sent shares about 7% higher in the premarket. The ride-hailing and logistics company announced a fourth-quarter loss that was narrower than analysts had expected and moved its forecast on a key measure of profitability forward. Revenue in Q4 of $4.07 billion was basically in-line with estimates.

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