Uber’s IPO means higher fares for rides

Uber’s first-quarter earnings report released Thursday — its first since the ride-sharing company went public on May 10 — disclosed more than the financial condition of the company.It also opened a window on the economic reality of the ride-sharing business. In discussing that reality, Uber executives revealed something that always percolated in the background about its business: Once Uber went public, its subsidized pricing would disappear.That could create a new headwind for the company’s growth, which in any case has been slowing, according to the earnings release. Chai’s promise and the trading pattern show that public investors will be taking a much harsher view of Uber’s marketing expenditures than did the private venture investors who have been providing the company with its capital up to now.

Source: www.latimes.com