Lowe Moment and Uber Blackmail
Uber says it will shut down its ride-hailing service in California on August 21 if the court ruling declaring that its drivers must be treated as employees is not overturned, but it will continue to operate its Uber Eats delivery service. The lawsuit was specific to ride-hailing drivers so delivery drivers may continue to be considered independent contractors for the time being.
This is significant because Uber has seen a shift in its revenues since the beginning of the pandemic. Their delivery business has grown and their ride-hailing business has shrunk as people have been forced to stay home. If the ruling remains, more drivers and Uber business will be focused on the delivery aspect of the app.
Home Depot is reporting earnings Tuesday morning and expectations are high. There was a surge in demand for home improvement supplies last quarter as many Americans spent increased time at home. The retailer likely benefited from this boost, but is also likely to issue a cautious outlook on the future.
Their performance will be compared with rival Lowe’s which reports Wednesday. Lowe’s bested Home Depot last quarter, and this week’s report will be important for determining whether that was an isolated occurrence or part of a larger trend.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.