Daily Management Review

Uber stock climb above placement price for the first time since IPO


On Thursday, papers of Uber Technologies taxi service finished trading on the New York Stock Exchange above the price of accommodation for the first time in a month.

nuclimeditorial via flickr
nuclimeditorial via flickr
On the eve, the stock rose in price by 6.2%, to $ 45.13 per share. In mid-May, trading started at $ 45 per share, when the company raised $ 8.1 billion.

Meanwhile, the main rival of Uber, American Lyft Inc., is not doing so great. Value of its securities has not risen above the offering price since April. IPO Lyft took place in late April.

Since early June, Uber quotes rose by 8.7%, Lyft - by 14%, while the S&P 500 index grew by 3.5%.

Meanwhile, the international taxi service Uber Technologies Inc plans to enter the markets of two more countries in West Africa, as well as introduce a boat taxi service in the economic capital of Nigeria, Lagos, reports Reuters news agency referring to a statement by the leading senior representative of Uber for conducting business, Brooks Entwistle. 

According to the agency, many countries in sub-Saharan Africa are characterized by a relatively low level of ownership of private cars, rapid population growth and lack of an efficient public transport system in rapidly developing cities.

Uber is already present in the markets of southern and eastern Africa, where more than 36 thousand active drivers are registered in the system, but for the most part it does not work in West Africa, not counting Nigeria and Ghana, the agency reports. In view of the current situation, Entwistle called West Africa a zone of potential expansion of the company. He reported that negotiations with the relevant regulatory authorities of Côte d'Ivoire and Senegal are currently under way.

He also announced the intention to create a boat taxi service in the Nigerian city of Lagos. A similar service is already successfully developing in Indian Mumbai, he said.

source: bloomberg.com, reuters.com