Uber's U.S. market share is now at 77%, down from 84% at the beginning of this year, as competitor Lyft has capitalized on the ride hailing company's recent transgressions, the Financial Times reported.
After January's #DeleteUber campaign, allegations of sexual harassment, mishandling of medical records and an absent CEO, Uber has lost some ground in the race for market share as U.S. growth rates slow.
Although Uber's global sales grew three-fold in the first quarter when compared with the same time last year, market share is an important metric for ride hailing companies. That's because the more drivers and riders there are in an area, the more efficiently the network-based company can operate.
Lyft is certainly still the underdog, with 2016 revenue of $708 million - just one-ninth of Uber's. But Manhattan Venture Partners Head of Research Santosh Rao said, "investors are worried that Uber may be self-destructing to some extent."
What's Hot On the TheStreet
All eyes on Apple this week: Apple's (AAPL) - Get Apple Inc. (AAPL) Report stock will be on the minds of Wall Street bit more than the norm this week. Shares of the tech giant have fallen 6.9% since the Nasdaq's peak on June 8 amid a broader selloff in tech. Not helping near-term sentiment on the company are two rare analyst downgrades that have questioned how big a seller the iPhone 8 will be.
But investors shouldn't be ready to throw in the towel on Apple by any stretch of the imagination.
"When you have these sellers come in, all you have to do is wait them out -- and one of the things I learned as a hedge fund manager is that patience is a true virtue," TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on Apple's recent slide.
After the deal was announced on Friday, U.S. Rep. Ro Khanna (D-Calif.) urged the U.S. Department of Justice to conduct a review on the merger's legality and possible harm to the economy.
"I am concerned about what this deal means for suppliers and neighborhood grocery stores," Khanna said in a statement. "The Justice Department and FTC must undertake a review that considers not just the merger's impact on prices, but also the impact on jobs and wages. We need to reorient antitrust policy to factor in the harm that economic concentration causes for American workers."
Meanwhile, Whole Foods shares are trading above Amazon's offer price as to suggest a bidding war may ensue.