NEW YORK, May 13 — Uber shares went into a fresh skid today — 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 per cent at US$38.95 after 15 minutes after slipping as much as 10 per cent in the second day of trade on the New York Stock Exchange.
Valued at some US$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 per cent.
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 per cent to US$49.38, and have given back some 30 per cent since the company’s market debut in late March. — AFP
Source: The Malay Mail Online