Uber, DoorDash, Lyft lose combined $9 billion in market cap amid selloff

The country’s three largest app-based concert companies widened their loss streak and fell $ 9.12 billion in market capitalization on Monday following a wide market sale.

DoorDash Inc. DASH,
Shares closed at an all-time low after sinking 11% to $ 64.18, the highest percentage since March 14, when it fell 12.54%. It was also the worst three-day stretch for stocks since the three days ended on March 7, when they fell 22.93%. The company lost $ 2.76 billion in market capitalization on Monday.

Shares of Car Giants Uber Technologies Inc. UBER,
and Lyft Inc. LYFT,
both closed to lows they hadn’t seen since their worst show at the start of the coronavirus pandemic two years ago. Uber shares closed at $ 23.05, down 11.6%, the lowest close since April 3, 2020, when it closed at $ 22.82. Shares of Lyft closed up $ 9.3% at $ 18.61, the lowest close since March 18, 2020, when they closed at $ 16.05. Uber saw its market capitalization lose $ 5.7 billion and Lyft lost $ 660 million on Monday.

For Uber, the big drop came on the same day as news that CEO Dara Khosrowshahi sent an email Sunday night to staff announcing cost cuts, treating hiring “as a privilege” and having to ” do more with less “. In the email, the CEO cited a “seismic shift” in the market and investors ’expectations. That’s why he said the company would make a change of its own: instead of measuring profitability through adjusted EBITDA, it would use free cash flow.

DA Davidson analyst Tom White said Monday he was pleased to see Khosrowshahi “move decisively in response to the change in the stock market environment and major problems for investors.”

On the other hand, Lyft executives told analysts during last week’s earnings call that they intended to spend more on drivers ’incentives and marketing, causing the company’s shares to fall. White attributed the contrast of tactics to Lyft’s “lack of a multi-product platform during the pandemic,” which negatively affected its supply of drivers. Meanwhile, Uber has said its delivery business has allowed it to keep on its platform transportation drivers who may have been sidelined by the pandemic.

Uber, Lyft and DoorDash reported all first quarter results last week, exceeding revenue expectations but continuing to record net losses. Uber shares have fallen 45% so far, while so far this year Lyft and DoorDash shares have fallen more than 56% and 57%, respectively.

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