Uber still in reverse on second day of trading

UBER UBE shares plunged by as much as 13pc 13p on its second day of trading.

The Th drop came after the taxi app company com had a rough stock market ket debut on Friday, closing $3.38 lower low than its float price of $45.

And A yesterday shares hit a low of $36.09 $36 – 13.2pc lower than the business’s bus closing price on Friday and an overall drop of 20pc from the float price.

It comes amid concerns about how Uber and its arch-rival Lyft will wil become profitable.

Both B face rising costs and regulation, lat with Uber warning in its prospectus pro for investors that it may ma never be in the black.

It is also entangled in legal battles bat around the world with its drivers dri over wages and is still trying ing to repair its reputation after a series ser of scandals under former boss bos Travis Kalanick.

H He was forced to resign in 2017 by a group of investors, with new ne boss Dara Khosrowshahi appointed to turn around its fortunes just months later.

Uber has said it has the potential to grow not just in the cab-hailing business, but also as a ‘super app’ to provide logistics services, such as grocery and food delivery, organising freight transportation and even mobile payments.

However, it posted a loss of £1.4bn last year and analysts have raised doubts about whether it can become more efficient.

At the same time, traders have taken a dim view of Lyft’s potential for profitability so far.

Lyft, which went public at $72 a share in March, has lost a third of its market value since making its separate debut.

Last night it emerged that banks had raked in £82m from Uber’s float. Morgan Stanley made the most among the underwriters, earning £31.3m. ÷ Apple faces a lawsuit over claims it has monopolised the sale of apps used on its iPhones, after the US Supreme Court rejected the company’s plea to dismiss the case.