UBER

UBER is the stock code for Uber Technologies, Inc. A decade after it was founded, Uber was listed on the New York Stock Exchange in May 2019.

 

Offering ride-hailing services through a mobile app, Uber disrupted modern transportation and, at one point, became the world’s most valuable start-up.

 

Initially operating only in San Francisco, Uber has conquered the world, revolutionising how people go from one place to another. Uber currently operates in over 80 countries with plans to expand to the rest of the globe.

 

It has since expanded from ride-hailing to food delivery, package delivery, couriers, and freight transportation.

 

Since it became a publicly traded company, UBER has had a bumpy ride. Here are some factors which contributed to UBER’s volatility.

 

• The emergence of competition like Lyft, Grab, Yandex, and Bolt has taken a toll on Uber’s stock performance. Uber has to compete not just for passengers but also drivers.


• As with most companies, the supply and demand have an impact on the stock performance. Quarantines and lockdowns, for example, rendered Uber’s ride-hailing services unnecessary.


• Uber has faced public criticism for several issues, including alleged mistreatment of drivers, wage disputes, disruption of the traditional taxi industry, aiding traffic congestion, and even racial profiling. Widespread media coverage of these controversies is a critical factor shaping the share price.


• Legal battles are also major drivers for UBER’s stock price. Historically, the price of UBER would move in a downwards trend whenever countries would ban UBER in a bid to support local ride-hailing services.