Uber’s story has been a synonym to the term ‘digital disruption’. The tech company has revolutionized urban transportation and virtually changed the dynamics of the whole market. After a lot of talks, preparation, and hopes, the tech company finally made its way to Wall Street on recent Friday. However, the Initial Public Offering (IPO) did not go quite as planned, and some market experts are of the view that it repercussions might go beyond Uber. It has raised questions on the viability and financial feasibility of other tech companies as well.

When the bell rang in NY Stock Exchange on Friday, Uber started its offering at $45.00 per share; a price that most bankers thought was justified.  By the end of the day, however, the stock price of Uber was down by over 7.6% to $41.57 per share, making it one of the biggest disappointments in recent years, especially for a tech company.

There have been serious questions about the viability of the business operations the company has and future earning potential with these operations. First earning report of Uber will be due in a few months and it will provide us with a better understanding regarding its feasibility.

However, we already have an example of a similar company, Lyft. Interestingly, Lyft, who also happens to be a key competitor of Uber, too had disappointing results in its first quarter of 2019. While Lyft gained some momentum in its trading value, it too started selling at a price below IPO within a few days. It also reported a loss of $1.1 billion in the quarter.

Coincidence? Maybe! But these events have got market experts thinking about how viable some of these tech companies are in the long run. It is a fact that people are already looking to spend money on self-driving cars. Many companies are also raising and dedicating finance in this endeavor.

It is believed by some that Uber’s only chance of long-term survival and growth may be to pull off an autonomous vehicle model.

Just a few months back, bankers would value Uber at $120 billion upon its IPO. However, its current market cap of just over $75 billion is also evident that markets can be ruthless where any miscalculation is punished.

Upcoming months will allow us to have a clearer picture regarding the future of Uber, but the story of its IPO has a lesson to be learned for future tech companies.