CNBC reported that Uber closed down 4.3 percent to $29.15, falling below its previous low of $30.29 on Sept. 27. Earlier in the day, the shares hit an intraday all-time low of $28.65. And Lyft ended the day falling 3.1 percent to $39.57, compared to its previous low of $40.84 on Sept. 30. The stock dropped as low as $38.68 earlier in the day to a new intraday low.
Uber, which had a private valuation of $76 billion before its IPO in May, now has a market cap of around $49 billion. Lyft’s market cap is around $11.6 billion, down from its last private valuation of about $15 billion.
Early Uber investor Bradley Tusk said in August that Uber needs to be more competitive.
“They’ve got to be that A-to-Z for transportation,” Tusk said. “Whether you’re getting yourself to A-to-B on a bike, scooter, or a car, bus, whether furniture being shipped on a truck, or a burrito from a messenger, they’ve got to be the default for all of that.”
In an Aug. 27 research note, however, Ronald Josey, an internet analyst at JMP Securities, said data from a recent survey found many riders don’t even compare prices between Uber and Lyft, “highlighting the inelasticity of demand.”
“With fewer users price comparing between services as ride sharing services compete on brand and product, we believe pricing could continue to be rational,” he said.
And, back in April, Lyft was hit with two class-action lawsuits filed by some investors who said the company exaggerated its market position during its IPO in March, which they said led to a shedding of stock value.
The suing investors said Lyft overinflated its value in a prospectus, in which it said it had 39 percent market share. Both suits also claim the company didn’t tell investors that it had recalled 1,000 bikes in its rideshare endeavor.