But reportedly, Free Now, which is owned by Daimler and BMW, will take over its rival Free Now for over 1 billion euros
The equestrian company also received permission to continue its business in London for a further 18 months.
The over-share price closed the week at $36.75, up 8.99% from the week
Uber (NYSE: UBER) closed the week up 9% to stay above the important support level in the short term. The ride holding company reportedly plans to acquire its rival Free Now for over €1 billion ($1.2 billion).
Fundamental analysis: New targets identified
Free Now is a cab company jointly operated by Daimler and BMW. Daimler is prepared to reach an agreement with Uber, while Oliver Zipse, the Chairman of the Board of Management of BMW, remains hesitant and is considering offering Uber a stake in the company, it is said.
If the deal goes through, it would significantly strengthen Uber’s position in the European ride hauling industry.
Free Now began operations last year when it was jointly founded by German automotive giants Daimler and BMW. The cab app works in over 100 cities across Europe, and users can rent both regular cabs and private cars like Uber’s.
Users who used Free Now previously drove black cabs like those in London until the company merged with the French cab company Kapten a few months ago.
Prior to the merger, Kapten was the second largest ride-hailing company in the UK, and the merger made it a direct competitor of Uber, which was closely scrutinized by regulators.
Uber received permission to continue its business in London for a further 18 months after the London Transport Authority announced last year that it would not renew Uber’s operating licence due to problems relating to Uber’s safety practices. It is important to note that London is the largest market for Uber in Europe.
“Uber does not have a perfect record, but the picture has improved,” Deputy Chief Justice Tanweer Ikram said in a written ruling last month.
“Despite their historical weaknesses, I now consider them suitable and appropriate to hold a private rental car (PHV) driver’s license in London,” he said.
Technical analysis: Solid profits achieved
The Uber stock closed the week at $36.75, up 8.99% from the week. This allowed buyers to protect the important support zone near 35.00. This is where two diagonal trend lines meet to create critical short-term support.
The bulls are now well positioned to push for a move above the short-term resistance line above the $38 level. A breach above $38.78 would mark a new 8-month high for the Uber stock. In that case, a new wave of buyers of Uber-shares is likely to emerge, looking to push the stock towards $41.86.
Uber has reportedly offered over 1 billion euros ($1.2 billion) to acquire the European equestrian sports company Free Now. Meanwhile, Uber’s share price has made significant gains to position the stock for further gains.