Published: Mon, May 13, 2019
Markets | By Otis Pena

Some Perspective On Uber's Opening Day Trading Volume (NYSE:UBER)

Some Perspective On Uber's Opening Day Trading Volume (NYSE:UBER)

Uber's IPO was slated to be the biggest IPO in 2019, but the company's share price was about one-third less than experts predicted. Uber eventually hired Khosrowshahi to lead the company.

While both companies are banking on autonomous vehicles in the future to help them establish a profitable business, that is still some ways off, if ever, and there is already considerable skepticism among customers about the safety of self-driving cars.

Tony West, Uber's chief legal officer who has been working to fix Uber's image while settling lawsuits around the globe, shot smartphone videos from the floor while waiting for the first trade.

After the biggest initial public offering of the year, Uber Technologies Inc ended its first day of trading Friday below its last private valuation.

Its stock debuted at $38 per share in 2012, rose to $42 on its first day of trading and closed at $38.23. While the company claimed in a May 9 SEC filing that it believes "drivers are independent contractors", Uber clearly doesn't believe that too hard, because the filing goes on to reveal that Uber has $132 million squirreled away to pay to 60,000 drivers who are suing to be considered employees. The amount is significantly lower than it was just a few months ago, when analysts projected a company worth $100-$120 billion.

Uber's market cap was around $74 billion when its shares started to trade on NYSE. While there will be plenty of investors willing to accept short-term losses for long-term gain, Uber and Lyft will have much more competition in the autonomous taxi market than it now has in the ride-share market, including companies like Tesla and Google.

IOF kill Palestinian protester in Gaza
The Palestinians have dismissed U.S. efforts since President Donald Trump decided in 2017 to move the U.S. Rights organizations condemn the blockade as a punishment for Gaza's 2 million residents.

The IPO was oversubscribed, but Uber settled for a lower price to avoid a repeat of Lyft's IPO in late March, which priced strongly, began trading up, then plunged.

The IPO was a landmark moment for the decade-old company, which was started after its founders struggled to find a cab on a snowy night and has grown into the world's largest ride-hailing company, making more than 10 billion trips.

The company's road to IPO was marred by several hurdles including increased regulation in several countries and fights with its drivers over wages.

Uber has said it has the potential to grow not just in the cab hailing business, but also as a "superapp" to provide logistic services, such as grocery and food delivery, organising freight transportation, and even financial services, much like Grab, its Southeast Asian counterpart.

Uber is yet to make a profit and warned recently it may never do so. Uber is by no means the only tech company with a "We do bad things" fund: Facebook recently revealed that it anticipates paying $3 to $5 billion in fines to the FTC, and its chief competitor Lyft noted in a prospectus of its own that it is "currently involved in a number of [lawsuits]" from drivers similarly challenging their contractor status.

The company weathered controversies including the unearthing of a culture of sexism and bullying at Uber and a US Department of Justice investigation, which culminated in the resignation of Kalanick.

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