This is the reason why Uber and Lyft haven't done well in the market
May 27, 2019
Earlier this year, there was a lot of anticipation regarding the IPOs of two of the hottest tech startups in the world: Lyft, and Uber. However, both companies have dropped below their initial target price, something that many analysts predicted. According to Carter mack, co-founder of JMP Group, one of the firms that helped Uber go public, money-losing firms like Uber and Lyft need to explain how they intend to become profitable to sway investors into throwing their money at the company. Mack added that some of these tech startups had had such successful funding rounds that they can continue operating without turning a profit, but this strategy doesn't work for the stock market.