What's next for Uber after a rocky IPO debut?

Lyanne Melendez Image
Saturday, May 11, 2019
Rocky start for Uber's IPO
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They revolutionized transportation. But it was a rocky start for the long anticipated Uber IPO. This as drivers say they're still unable to make ends meet. What's next?

SAN FRANCISCO (KGO) -- Ten years ago, it revolutionized the way people get around and San Francisco-based Uber went public on Friday. While it opened at 45-dollars a share, it ended losing on the day.

The New York Times said, "Uber's Stock Disappoints capping a rocky path to its IPO."

Before it went public, Uber issued a statement saying "the stakes just got higher. Our world just got a bit bigger. "

RELATED: San Francisco-based Uber dips below $45 per share IPO price as trading starts

The company acknowledged all eyes will be on them.

Uber has gotten progressively controversial. The latest criticism has been over pay cuts and working conditions. Uber is not the only one facing criticism from drivers. Lyft has received its share.

We drove around with Geno Casttagnoli on Friday who says Lyft cut his pay from 68 cents a mile to 55 cents.

"Uber and Lyft both benefit by the price war because Uber and Lyft both attract more customers by reducing their prices, but the people who drive the cars are getting their throats cut," Casttagnoli expressed.

On Friday, Uber said there will be periods when they will be misunderstood.

"It's during those days, regardless of the ups and downs, that we should focus on our work on creating opportunity, on moving the world, and relentlessly innovating and executing," said Uber CEO Dara Khosrowshahi.

RELATED: Uber to sell shares at $44 to $50 each in stock market debut

Quentin Hardy is the head of editorial for Google Cloud.

"It's more than just taxis and share riding, it's something much grander than reshaping the economy. Are these two companies the win it all, time will tell."

"I commend Uber for their success, but their success does not belong solely to the investors or executive, it belongs to the city that helped incubate them," said Gordon Mar, San Francisco Supervisor.

Nearly eight years ago, City Hall gave up a 1.5 percent payroll tax for companies like Twitter and Uber for staying or moving to San Francisco. That tax break will expire on May 20.

It's almost certain that offer will not be extended, instead many are calling for an IPO tax for Uber, Lyft, and other companies.

"We've got a ton of these companies here, now they're continuing to come here, they want to commit and grow here," said Supervisor Matt Haney. "Now the conversation we have to have is how we meet our needs as a city."