The operator company "has spent a decade creating algorithms to extract every penny of drivers," said one protester.Wednesday was the first day that investors and Uber employees could withdraw their shares and turn their shares into real money. While many early investors announced that they would keep their shares, others flooded the market, which caused a record drop in Uber shares.
At the end of the day, the company's shares traded at $ 26.96, about 40% less than its initial public offering of $ 45.
The coordinated protests from drivers all over California have probably added to Uber's hassle on Wednesday. The goal of the drivers was to draw attention to how the end of Uber's blocking period would likely contribute to the disparity of wealth between them and the company's investors and employees.
"Uber has spent a decade creating algorithms to reduce driver costs as much as possible," Sacramento-based Uber driver Erica Mighetto told an event at one of Google's San Francisco offices. Google Ventures, the company's venture capital subsidiary, has held more than $ 5 billion in Uber shares since May. "There is no reason for Google Ventures to make millions of dollars when drivers like me become homeless." Formerly considered a success too big to fail in Silicon Valley, Uber has struggled as a public company. Since his Wall Street debut in May, his share price has fallen, three board members have resigned and an exodus of executives has been recorded. Uber also laid off about 5% of its staff in three rounds of cuts. Optimism in the company seems to be weak.
As the lock-up period ended on Wednesday, the company saw its stock price hit its lowest level at $ 25.58. According to Bloomberg, Uber was one of the most traded US securities of the day. At one point, a block of 7.75 million shares was sold, and Goldman Sachs sold another 2 million shares. Uber had about 1.7 billion shares when it went public, according to documents filed with the US Securities and Exchange Commission.
Uber did not respond to the request for comment.
In addition to his success on Wall Street, Uber is fighting a battle in his home state, California.
At the end of the day, the company's shares traded at $ 26.96, about 40% less than its initial public offering of $ 45.
The coordinated protests from drivers all over California have probably added to Uber's hassle on Wednesday. The goal of the drivers was to draw attention to how the end of Uber's blocking period would likely contribute to the disparity of wealth between them and the company's investors and employees.
"Uber has spent a decade creating algorithms to reduce driver costs as much as possible," Sacramento-based Uber driver Erica Mighetto told an event at one of Google's San Francisco offices. Google Ventures, the company's venture capital subsidiary, has held more than $ 5 billion in Uber shares since May. "There is no reason for Google Ventures to make millions of dollars when drivers like me become homeless." Formerly considered a success too big to fail in Silicon Valley, Uber has struggled as a public company. Since his Wall Street debut in May, his share price has fallen, three board members have resigned and an exodus of executives has been recorded. Uber also laid off about 5% of its staff in three rounds of cuts. Optimism in the company seems to be weak.
As the lock-up period ended on Wednesday, the company saw its stock price hit its lowest level at $ 25.58. According to Bloomberg, Uber was one of the most traded US securities of the day. At one point, a block of 7.75 million shares was sold, and Goldman Sachs sold another 2 million shares. Uber had about 1.7 billion shares when it went public, according to documents filed with the US Securities and Exchange Commission.
Uber did not respond to the request for comment.
In addition to his success on Wall Street, Uber is fighting a battle in his home state, California.
Uber stock dwindles and drivers protest against closing of lock-up period
![Uber stock dwindles and drivers protest against closing of lock-up period]()
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