Uber slides as London revokes company's license—Cramer and other pros react

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Uber slides as London revokes company's license—Cramer and other pros react $UBER (via TradingNation)

and a longtime stock picker, said Uber didn't have the same brand loyalty in the U.K. as it does across the pond:

"Look, anyone who's using them in London knows it's ... very inexpensive versus the rest, versus the traditional kind of guild. That's a guild over there for taxi drivers, and they're really busting it. So, it's a little different from here in New York or from other cities where the incumbents didn't have a lot of favor of the customers.

"I'm not [an] expert on what's going on at Uber, but I think there are two interesting trends we're seeing in general. No. 1, as [the] tech economy becomes a bigger part of the overall economy, there's obviously more scrutiny by government regulators all over the world. And when I was at Snap, I had to spend a lot of time with a lot of government organizations and things like that, and I think it's a new way of life.

Dan Ives, managing director at Wedbush Securities, said the decision raises concerns about Uber's top line: "This would be a nightmare for Uber, especially the fact that it's about 3-4[%] revenue impact. If you think about the ramifications here, this has been a back-and-forth between Uber and London. But 3-4% could come off the top line. I think [the] company's caught flat-footed by this decision."

 

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