(Reuters) – Shares of Uber Technologies Inc surged as much as 44% on Thursday after Chief Executive Officer Dara Khosrowshahi said it had plenty of cash on hand to tide over the coronavirus crisis and signaled a recovery in some parts of its business.
FILE PHOTO: Uber’s logo is pictured at its office in Bogota, Colombia, December 12, 2019. Picture taken December 12, 2019. REUTERS/Luisa Gonzalez
“We are very fortunate to have a strong cash position with about $10 billion of unrestricted cash as of end of February,” Khosrowshahi said on a call with analysts before markets opened.
“In any crisis, liquidity is key.”
His comments come as steps taken to contain the rapid spread of the virus have slowed economic activity, forcing several companies to hoard cash and access credit lines to pay wages and overheads.
Khosrowshahi said in an extreme scenario where the rides business declines 80% for the rest of the year, Uber will still have $4 billion of unrestricted cash.
“About…
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