Major shareholders at appear to have given up on the stock, so there is still an enormous overhang of stock. Competition from ride share companies is intense, and these have one clear advantage - these don't take into account the full cost of providing their service i.e. drivers use relatively new cars and largely ignore depreciation. I've seen several studies which estimate Uber would have to triple fares to break even. What Uber is doing is called predatory pricing i.e. selling a service at such a low level that other services cannot compete and go out of business. Eventually the regulatory will catch up with these types of ride sharing companies and force them to deal on commercial terms. Uber will fight it desperately because they know that their business model will only work if they can eliminate the opposition (cabs) before their fares are raised to commercial levels.
CAB Price at posting:
$2.12 Sentiment: Buy Disclosure: Held
