SAN FRANCISCO – Uber will face another challenge in the form of a regulatory pothole on an already pothole-riddled road to its initial public offering of stock in 2019.
New York City is imposing a one-year moratorium on new ride-hailing licenses in Uber’s largest U.S. market, raising the idea that other major cities may attempt to conduct similar crackdowns as they try to easy traffic congestion.
Uber may, as a result, may have trouble boosting its revenue and reverse its history of uninterrupted losses. That, in turn, would affect the price that investors are willing to pay for Uber’s stock in the IPO that the San Francisco company plans to make next year.
Uber maintains that New York’s moratorium is a bad idea.