Ride-hailing

Lyft's new problem: A class action lawsuit

An illustration of a cell phone with a pink background and a white dollar sign
Illustration: Lazaro Gamio/Axios

Lyft last Friday was hit with a class action lawsuit by investors in its IPO, who have seen the value of their shares fall precipitously.

My thought bubble: Normally I ignore such cash grabs, as they reek of sour grapes. But this one, with or without merit, highlights a reason why both Lyft and Uber have struggled since going public.

Uber still hasn't regained its IPO price

Data: Money.net, FactSet: Chart: Axios Visuals

Uber on Friday completed its first full week of trading at $41.91 per share, or 6.87% below its $45 per share IPO price and just a touch below its first post-IPO trades of $42 per share.

The bottom line: As the IPO stumbled last Friday, there had been some happy talk that traders would return to Uber after the weekend. They didn't.