By: Mike Mustiglione
Uber is reportedly heading to the World Trade Center.
Published reports are claiming that the ride-share company may soon sign a lease and both move and expand its New York City HQ.
“The ride hailing app is on the verge of completing a deal to take seven floors, totaling nearly 308,000 square feet, at 3 World Trade Center. The arrangement includes an option to expand onto an 8th floor, an addition that, if exercised, would bring its footprint to more than 350,000 square feet,” reported Crain’s New York Business. “Several sources directly involved in the transaction said that Uber and the building’s landlord, Silverstein Properties, had ironed out all of the major terms of the lease, clearing the way for the transaction to be completed imminently.”
These are heady times for Uber , which went public in May in an $82 billion stock offering. “Debt investors in ride-share company Uber Technologies UBER, -2.41% got a nice lift on Friday from the company’s new $1.2 billion bond sale,” reportedmarketwatch.com. “Strong demand for the high-yield bonds allowed the company to borrow more than its initial $750m target on Thursday, while paying investors yields of 7.5%.”
By Friday, the financial news organization continued, “holders of the bonds saw yields fall as low as 7.291% in trading and prices as high as 101 high, according to trading and data platform MarketAxess. Not a bad gig, if you can get it. Although, before Uber’s $8 billion initial public offering in May, Uber bond deals were limited in scope, with its earnings, revenue and other financial projections treated as closely-guarded secrets.”
At the same time, potential problems have arisen, as well. Both houses of California’s legislature have passed sweeping legislation requiring businesses to treat more of their workers as employees rather than independent contractors, according to arstechnica.com. “As a result, more workers will enjoy protections like the minimum wage and benefits such as unemployment insurance. The bill is now on its way to Governor Gavin Newsom, who is expected to sign it.”
According to the piece, the law “will apply across the California economy, but it could have particularly stark consequences for Uber and Lyft—both of which are based in the Golden State. The companies currently treat their drivers as independent contractors, and their entire business model is built around that assumption.” In the hours after the legislation cleared the California legislature, Uber and Lyft both blasted the law and vowed to seek changes.”