Uber Shares Fall Below IPO on Stock Market Debut

Shares in the ride-hailing app were down amid concerns about whether such companies are able to turn a profit
The US ride-hailing firm had priced its IPO cautiously at $45 (£34.50) a share, giving it a market value of $82.4bn (£63.1bn) ahead of its debut on the New York Stock Exchange. The IPO price was already almost a third less than what investment bankers had predicted last year, with Uber settling for a lower valuation amid a series of investor concerns including profitability and the lukewarm reception for rival Lyft’s market debut. Lyft went public six weeks ago - but its share price has tumbled by more than 20% from its IPO price set in late March. Although the company’s co-founder Travis Kalanick was ousted as chief executive two years ago, his outstanding stake in the business was expected to be worth $5.3bn (£4.1bn). He was spotted on the trading floor of the NYSE as the bell was rung in the presence of his successor, Dara Khosrowshahi. The firm was also accused of covering up a computer break-in that stole personal information about its passengers. Uber has faced several controversies in recent years - including claims of sexual harassment within the company and allegations that it stole self-driving car technology. Uber has been trying to make amends with drivers. More than 5.2 billion trips were completed using Uber last year - delivering food and giving rides to its 91 million passengers. The company said it had reached a settlement with tens of thousands who claimed they had been improperly classified as contractors, at a cost of up to $170m (£130m).