‘New entrants threaten Uber profit in London’

Bloomberg

New entrants to the London ride-hailing market could potentially pose a risk to one of Uber Technologies Inc.’s most profitable markets, according to analysts at Morgan Stanley.
Every 400 basis point change in UK rideshare adjusted net revenue would result in a $100 million hit to Uber’s 2020 profit, analysts led by Brian Nowak wrote in a note. The country accounted for 4-8 percent of Uber’s 2018 rideshare bookings, they estimated.
The warning came after Daimler AG-backed Bolt, formerly known as Taxify, relaunched in the British capital this week, with India’s Ola set to enter the UK market by the end of the year.
The analysts noted that the “headlines may be worse than the reality,” as it’s still unclear exactly how much funding the new entrants will have, and how quickly users will adopt the rival applications. Uber has had some success in fighting off competition in countries like Brazil, they said. “But if a market-share battle ensues, it’s a risk.”