Uber stock tanks 6% after the ride-hailing firm loses its London operating license (UBER)

Uber, IPOJohannes Eisele/Contributor/Getty

  • Uber’s stock is set to sink on Monday morning after the ride-hailing firm lost its license to operate within London. 
  • The stock fell 6.3% in premarket trading, at 10:30 a.m. in London (5:30 a.m. ET)
  • The stock drop would wipe $3 billion off the $50.4 billion market cap Uber closed with on Friday. 
  • Transport for London said it found a “pattern of failures” which put the safety of passengers in the city at risk. 
  • View Business Insider’s homepage for more stories. 

Uber’s stock is set to sink on Monday morning after the ride-hailing firm lost its license to operate within London

The stock fell 6.3% in premarket trading, at 10:30 a.m. in London (5:30 a.m. ET), after Transport for London said it found a “pattern of failures” which put the safety of passengers in the city at risk. 

The stock drop would wipe $3 billion off the $50.4 billion market cap Uber closed with on Friday. 

Tfl said that it found 14,000 trips had been conducted by unauthorized drivers that were using approved Uber driver accounts to pick up passengers. 

Uber has about 21 days to appeal the decision, and in a statement emailed to Business Insider, it said that it plans to appeal, calling Tfl’s decision, “extraordinary and wrong.”

For more detail on this developing story, click here

Neil Wilson, chief markets analyst at Markets.com said that the London license removal will “unnerve investors.”

“It sends a worrying signal to the market about the regulatory overhang the company faces – if London goes this way there is a risk that other cities could follow, Wilson said. 

“London is one of five cities that combined account for about a quarter of revenues – so it’s a big deal in terms of raw revenues. The problem Uber faces is that there is no shortage of competition to step in, so once gone it could be forgotten pretty quickly,” he added. 

Watch Uber trade live here.

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