Uber’s shares fell on a humiliating first day of trading in May and have closed above the $45 price of the initial public offering (IPO) on only two days since. The ride-hailing firm reported a $5.2bn loss for the three months to the end of June. Its biggest quarterly loss was weighed down by IPO expenses, but investors worry it might never make money.
Uber has big plans. The ride-hailing service wants to ferry the world around in self-driving cars and on electric scooters, deliver our takeouts and groceries by drone, and ship freight via robot trucks. But first Uber needs to answer a big question: will it ever make any money?
This week, Wall Street will have the chance to ask that question.
The chief executive of Uber has urged employees to ignore “pessimistic voices” after shares in the company slumped again on their second day of trading since Friday’s disappointing stock market debut.
Uber on Thursday priced its shares at $45 each on its Wall Street debut, valuing the company at a disappointing $80.4bn.
While its value could rise on the first day of trading, the figure is well below Uber’s initial $100bn target as investors got the jitters about the lacklustre performance of the float staged by its rival Lyft in March.
Uber is seeking a valuation of $82.4bn, less than the $100bn it was hoping for, but still making it one of the largest IPOs of all time, and one of the most hotly anticipated stock market listings in the tech world since Facebook made its Wall Street debut seven years ago.
Good luck to those Uber workers protesting about wages and working conditions. They picked their moment to coincide with this week’s IPO in New York, in which the company is set to be priced at $90bn (£70bn) or thereabouts, and they chose well. You do not have to be a bleeding heart liberal to think something obscene is happening when Uber drivers tell tales of sleeping in their cars to make ends meet while the founder, Travis Kalanick, has his shareholding valued at roughly $7bn.