Shares of dropped on Wednesday despite a strong earnings report, after arch-rival Lyft said it would need to pay out rich incentives to attract more drivers amid a labor shortage.
Uber stock was down 10 percent in morning trading, even after the company doubled its first-quarter revenue, beat expected operating earnings and forecast a strong second quarter.
The ride hail giant was dragged down in the wake of Lyft's announcement that it expects costs to rise due to driver incentives, sending Lyft shares plunging 34 percent on Wednesday morning.
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