World’s largest ride-hailing company, the stock is set to sink on Monday morning after the firm license got suspended, for operating in London.
The stock market fell drastically at 6.3% in premarket trading, at 10:30 a.m. in London, after transport for London said it found a “pattern of failures” which put the safety of passengers in the city at risk.
The dramatic stock drop would wipe $3 billion off the $50.4 billion market cap Uber closed with on Friday.
According to an email sent to Business Insider, the company has about 21 days to appeal the decision; it said that it plans to appeal, calling Tfl’s decision, “extraordinary and wrong.”
Markets.com chief analyst, Neil Wilson, stated that the London license removal will “unnerve investors.”
Neil revealed that 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.
Business Insider reported that Neil 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”.