Uber shares fell 2.46% to $69.67 after a shareholder lawsuit claimed thousands of rider sexual assaults were overlooked to accelerate growth, while Amazon Prime Day includes 20% discounts on Uber gift cards. These developments heighten legal and reputational risks even as promotional discounts boost gift card revenue.
Uber shares closed at $69.67, down 2.46%, underperforming the broader market as investors digest recent legal and promotional developments. The sharper decline reflects growing concern over potential liabilities and shifting market sentiment.
A new investor suit accuses Uber’s leadership of sidelining rider safety to fuel rapid expansion, citing thousands of sexual assault claims. The lawsuit targets the CEO and board, seeking damages and governance changes that could strain Uber’s finances.
During Amazon Prime Day, Uber gift cards are offered at a 20% discount, an uncommon deal aimed at driving prepayments for ride services. This promotion is expected to lift short-term gift card sales and enhance cash flow ahead of future ride bookings.
The safety lawsuit may raise settlement costs and erode customer trust, posing a medium-term drag on valuation. Conversely, the gift card discount could partially offset negative sentiment by boosting platform usage and near-term revenue.
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