Uber's IPO Falters as New Stock Sells For Less than IPO Price

Uber shares fall on stock market debut

Now a public company, Uber will have to deal with quarterly earnings reports and demands from shareholders to plot a path to profitability.

Ritter said on a percentage basis, Uber's first day ranks as the 99th worst open for IPOs raising more than US$100m.

The fall in shares undermined Uber's strategy of pricing its oversubscribed IPO conservatively at $45 a share to avoid a repeat of rival Lyft Inc's stock market struggles following a strong debut in March.

Khosrowshahi pitched the company during its IPO roadshow as the Amazon of transportation.

That made it the biggest first-day dollar loss of a US IPO, Jay Ritter, a professor at the University of Florida's Warrington College of Business told Business Insider.

After all the hoopla surrounding Uber Technologies's $8.1 billion initial public offering, investors in the ride-hailing company must have been less than thrilled as its shares debuted with a resounding thud.

Uber closed at US$41.57, giving it a market capitalisation of just US$69.7 billion.

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The company registered $11.3 billion in revenue for 2018, up 43 per cent from 2017. 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.

Gig Workers Rising is demanding that Uber and Lyft give their drivers a living wage, set more transparent policies on wages, tips, and fare breakdowns, provide retirement, healthcare, and leave benefits, and more representation.

Uber doesn't offer that, with billions in losses over its time so far and no clear explanation of how that might happen, other than potentially moving to autonomous vehicles and cutting human drivers out of the loop. She and CEO Dara Khosrowshahi were joined by Uber drivers from around the world and other Uber executives at the NYSE.

Even before shares began trading, the company's debut at the New York Stock Exchange featured some conflict.

Uber's next stop is the stock market, where it hopes to pick up more investors willing to bet on a ride-hailing market brimming with potential and conspicuously lacking in profits.

Uber's expansion into different markets may prove to be the saving grace, according to Wedbush Securities.

"It's going to keep bouncing around for months to come", Ortiz said.

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