Uber's first days as a public company are not going well.
Lyft and Uber drivers in multiple cities around the world held rallies, multiple-hour stoppages, and two-day work strikes in Atlanta, Boston, Chicago, Connecticut, Los Angeles, New York City, Philadelphia, San Diego, San Francisco, Washington, D.C., and in cities in the U. K.
Institutional orders were "slightly smaller" compared to similar high-profile IPOs, Picker said. Even after suffering serious losses since coming public, Uber has a market cap of roughly $64 billion.
It's unusual for such a well-known tech company, flush with investor funding, to do so poorly with its stock market debut.
Meanwhile, drivers say they're getting screwed. Uber closed 10.75% lower Monday, and competitor Lyft (NASDAQ: LYFT) declined more than 5.75%.
Digital enabled ride-hailing services have all but driven traditional taxis off the road. Waymo launched a ride-hailing service with robotic vans in the Phoenix area five months ago, but only 1,000 people are now allowed to use it. Uber also remain unprofitable despite rapid revenue growth.
The company tried to ease the market's anxiety by claiming that $894 million of the loss may have been attributed to factors related to its IPO - things like stock-based compensation packages and taxes. The company should be able to morph its ride-sharing platform into "a broader consumer engine including food and freight delivery, he said". Autonomous cars appear to be years away from reality. Not helping sentiment for Lyft is the very bad momentum in the stock post its own late March IPO and U.S. That means ride-hailing fares in the USA are likely to remain below the actual cost of providing the service, a boon for consumers. "Enough is enough... It's on the backs of the drivers that this company has grown, and we need to be heard", said Martinez.
On top of opening for trade below its IPO price of $45, shares of Uber ended the day lower by more than 7 percent, with the selling momentum carrying over to Monday's session.
Take Austin, Texas, for instance. It also demonstrates that there's a significant gap between how venture-capital firms and everyone else value large but unprofitable technology companies.
Meanwhile, Uber has been a major factor in evaluating Lyft's performance.
"It was a matter of a couple months and those three companies were gone", said Chris Simek, an associate research scientist with the Texas A&M University Transportation Institute, who co-authored a study of Uber and Lyft's impact on ride-hailing in Austin.
What does UBER's IPO tell us?