Page 25 - ARUBA TODAY

BUSINESS Saturday 11 May 2019
A25

Uber begins trading nearly 7% below its IPO price

By CATHY BUSSEWITZ the way millions of people of reaching the $120 billion vis Kalanick, as CEO nearly Hundreds, if not thousands,
MICHAEL LIEDTKE get around. That while also market value that many two years ago. of other Uber employees
TOM KRISHER transforming the way mil- observers believed its IPO The self-inflicted wounds in- are expected to become
Associated Press millionaires in the IPO.
NEW YORK (AP) — With a Meanwhile, scores of Uber
ring of the opening bell, drivers say they have been
Uber began picking up mistreated by the compa-
passengers as a newly ny as they work long hours
minted public company and wear out their cars
Friday and investors waited picking up passengers as
to bet on a service with they struggle to make ends
huge potential, but a long meet.
way from turning a profit. On Wednesday, some of
Shares in the ride-hailing them participated in strikes
giant were sold in an ini- across the United States to
tial public offering for $45 highlight their unhappiness
each, raising $8.1 billion, ahead of Uber’s IPO but
but it will take several hours barely caused a ripple.
for new investors to show A similar strike was orga-
how much they’re interest- nized ahead of Lyft’s IPO to
ed. Officials expect trading the same effect.
to start around 11:30 a.m. In its latest attempt to make
CEO Dara Khosrowshahi amends, Uber disclosed
and other company of- Thursday that it reached
ficials stood on a balcony a settlement with tens of
above the New York Stock thousands of drivers who
Exchange and clapped as alleged they had been
the bell rang to signal the The statue of Fearless Girl stands in front of the New York Stock Exchange before Uber, the world’s improperly classified as
start of the day’s trading. largest ride-hailing service, holds its initial public offering, Friday, May 10, 2019. Associated Press contractors. The company
The IPO price on Thursday said the settlement cover-
came in at the lower end lions of more people earn might attain. cluded complaints about ing most of the 60,000 driv-
of Uber’s targeted price a living in the gig economy. Another factor working rampant internal sexual ers making claims will cost
range of $44 to $50 per Before the opening bell, against Uber is the cold harassment , accusations $146 million to $170 million.
share. Khosrowshahi tried to tamp shoulder investors have that it stole self-driving car Now, Uber will focus on win-
The caution may have down expectations for the been giving Lyft’s stock af- technology, and a cover- ning over Wall Street.
been driven by escalating first day of trading. “We’re ter an initial run-up. Lyft’s up of a computer break-in Uber may be able to avoid
doubts about the ability going to be measuring suc- shares closed Thursday 23% that stole personal infor- Lyft’s post-IPO stock de-
of ride-hailing services to cess in three to five to 10 below its April IPO price of mation about its passen- cline because it has a dif-
make money since Uber’s years, not in one day,” he $72. gers. What’s more, some ferent story to tell than just
main rival, Lyft, went public said in an interview with Uber “clearly learned from Uber drivers have been the potential for growth in
six weeks ago. CNBC. its ‘little brother’ Lyft, and accused of assaulting pas- ride-hailing, says Alejandro
Jitters about an intensi- He said the company is the experience it has gone sengers, and one of its self- Ortiz, principal analyst with
fying U.S. trade war with dealing with a potential $12 through,” Wedbush Securi- driving test vehicles struck SharesPost. Uber, he said,
China have also contrib- trillion market so “it makes ties analysts Ygal Arounian and killed a pedestrian in has plans to be more than
uted to the caution. Stocks sense to lean forward.” and Daniel Ives wrote late Arizona last year while a a ride-hailing company by
opened broadly lower on Austin Geidt, one of Uber’s Thursday. backup driver was behind being all things transporta-
Wall Street after the two first employees, rang the Despite all that, Uber’s IPO the wheel. tion to users of its app, of-
countries failed to reach a opening bell. She joined is the biggest since Chinese Uber hired Khosrowshahi as fering deliveries, scooters,
deal on trade before Fri- the company nine years e-commerce giant Alibaba CEO to replace Kalanick bicycles and links to other
day’s tariff deadline. ago and is now head of Group debuted with a val- and clean up the mess, modes of transportation in-
Even at the tamped-down strategy for the Advanced ue of $167.6 billion in 2014. something that analysts cluding public mass transit
price, Uber now has a mar- Technologies Group, work- “For the market to give you say has been able to do to systems.
ket value of $82 billion — ing on autonomous vehi- the value, you’ve either got some extent, although Lyft “Whether or not that pitch
five times more than Lyft’s. cles. to have a lot of profits or seized upon the scandals will work kind of remains to
A black Uber logo was Over the years, she helped potential for huge growth,” to gain market share. be seen. It’s nearly impos-
hanging over exchange to lead its expansion in said Sam Abuelsamid, prin- Kalanick remains on Uber’s sible to tell now,” he said.
floor and bright green Uber hundreds of new cities and cipal analyst at Navigant board, although he isn’t “Obviously the risk to the
Eats trucks were parked countries. Research. expected to be on the po- company now is they have
outside. Men in black T- Uber’s IPO raised another Uber boasts growth galore. dium to help ring the open- a lot more shareholders that
shirts and hats with the $8.1 billion as the company Its revenue last year surged ing bell at the New York they have to convince.”q
Uber Eats logo handed out it tries to fend off Lyft in the 42% to $11.3 billion while Stock Exchange to herald
drinks and snacks on the U.S. and help cover the cost its cars completed 5.2 bil- the company’s debut Fri-
trading floor while photos of giving rides to passen- lion trips around the world day.
of sedans, helicopters and gers at unprofitable prices. either giving rides to 91 mil- Instead, he will be left
Jump bikes were shown on The San Francisco compa- lion passengers or deliver- standing on the sidelines
screens above. ny already has lost about ing food. while the spotlight shines
No matter how Uber’s stock $9 billion since its inception Uber might be even more on other Uber executives,
swings Friday, the IPO has and acknowledges it could popular if not for a series although Kalanick can still
to be considered a triumph still be years before it turns of revelations about unsa- savor his newfound wealth.
for the company most a profit. vory behavior that sullied its At $45 per share, his stake in
closely associated with an That sobering reality is one image and resulted in the Uber will be worth $5.3 bil-
industry that has changed reason that Uber fell short ouster of its co-founder, Tra- lion.