Uber Stock Slips 6 Percent After IPO

Uber shares slid in their first trades after a hotly anticipated public offering from the global ride-hailing giant.

After pricing at US$45 for the initial public offering - translating to a market value of $82 billion - Uber fell to $42.02 at the open on the New York Stock Exchange, a drop of some 6 percent.

The drop at the opening was a "big disappointment" and suggested lower demand than expected, said Matt Kennedy, a strategist at Renaissance Capital. He said that both Uber and US rideshare rival Lyft were lower on concerns about hefty losses.

"I've mentioned how much money Uber is losing," he said. "Silicon Valley may not care about losses, but Wall Street does."

Despite the staggering valuation, Uber dialed back some of its earlier ambitions for a value exceeding $100 billion after a rocky start for Lyft, which went public in March.

While Uber has lost billions of dollars since launching its first rides in 2011 in San Francisco, the company is aiming to develop a global brand that helps transform local transportation.

Whether Uber can drive to profitability using this model as it disrupts traditional taxi and transport services is a key question. (AFP)