Uber's transition to becoming a publicly traded company is landing with a thud, but it's not the first to experience that, not even this week.
Uber became a publicly traded company today with its initial public offering of stock valued at $45 a share on the New York Stock Exchange, but quickly lost value as it started selling at $42 a share nearly immediately.
That's highly unusual, especially for a high-profile tech company like Uber Shares of rid-sharing rival Lyft soared 21 per cent at one point during its initial public offering in late March.
Lyft shares hit a post-IPO low of $53 today, putting them 26% below their initial offering price.
"Our company is not a fair-weather company", Khosrowshahi said.
That made it the biggest first-day dollar loss of a US IPO, Jay Ritter, a professor at the University of Florida's Warrington College of Business told Business Insider.
At 12:07 pm Eastern time, Uber's shares were trading down 3.9 percent at $42.23, giving the company a market valuation of about $72.5 billion, according to a Bloomberg report, below Uber's latest valuation of $76 billion in August a year ago. "We're certainly not measuring our success over a day, it really is over the years", Khosrowshahi said.
Uber's revenue last year surged 42% to $11.3 billion, but the company admits it could be years before it turns a profit.
The much-awaited Uber Technologies shares stumbled on its debut on Friday with the share price opening below the IPO price level set by the company.
Uber had originally suggested a price range of $44-$50 for its share price listing, valuing the company at up to $120bn. Uber and Lyft have already decimated local taxi markets, taking much of their market share, and further gains may depend on convincing consumers to give up their cars.
"Uber is considered the leader and the one in the strongest market position".
Both Kalanick and Uber's other co-founder Garrett Camp were present at the stock exchange Friday but absent from the podium during the bell ringing.
SharesPost principal analyst Alejandro Ortiz said the timing for Uber to start trading was bad given the uncertainty over the trade spat with China.
"Does Uber become the next Amazon?"
The share slump reflects investor skepticism about the size of the ride-hailing market, Uber's ability to execute on food and package delivery and its push into autonomous vehicles, said Ygal Arounian of Wedbush Securities.