Uber slides 6 pc at open following last week’s rocky debut

Uber slides 6 pc at open following last week’s rocky debut

PTIUpdated: Wednesday, May 29, 2019, 08:11 PM IST
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An Uber logo is seen on a sign outside the company's headquarters location as people protest nearby in San Francisco, California on May 8, 2019. - One of the early promises of the ride-hailing era ushered in by Uber and Lyft was that the new entrants would complement public transit, reduce car ownership and help alleviate congestion. But a new study on San Francisco has found the opposite may be in fact be true: far from reducing traffic, the companies increased delays by 40 percent as commuters ditched buses or walking for mobile-app summoned rides. (Photo by Josh Edelson / AFP) |

New York: Uber shares went into a fresh skid on Monday – more bad news for the global ride-hailing giant, which endured steep declines in its hotly anticipated market debut last week.

Shares in Uber were off six percent at $38.95 after 15 minutes after slipping as much as 10 percent in the second day of trade on the New York Stock Exchange.

Valued at some USD 82 billion in one of the biggest initial public offerings (IPOs) in the technology sector, Uber’s debut Friday was a major disappointment, losing 7.6 percent.

Richard Windsor, an analyst who writes the Radio Free Mobile blog on technology, said Uber and Lyft have been pressured by their high valuations and intense competition.

Uber and Lyft “are currently engaged in a life or death struggle to become the dominant ridesharing platform in the USA,” Windsor said.

“It is this reality combined with the very high valuations at which they have been listed that is putting the pressure on these companies.” Lyft shares fell three percent to $49.38, and have given back some 30 percent since the company’s market debut in late March.

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