Why Uber Stock Was Down Today

Core Viewpoint - The Federal Trade Commission (FTC) has filed a lawsuit against Uber, alleging deceptive practices related to its Uber One subscription service, which has led to a decline in Uber's stock price amid broader market volatility [1][2]. Group 1: FTC Lawsuit Allegations - The FTC claims that Uber misled consumers about the benefits of the Uber One subscription and made it difficult to cancel, violating the Restore Online Shoppers' Confidence Act [2]. - Allegations include that users were unintentionally signed up for Uber One and faced challenges in canceling the subscription, with reports of navigating up to 23 screens and completing 32 actions to cancel [3]. Group 2: Uber's Response - Uber's spokesperson stated that the sign-up and cancellation processes for Uber One are clear and comply with legal standards, asserting that users are not charged without consent and cancellations can be completed in under 20 seconds [4]. Group 3: Market Implications - The lawsuit could lead to a slowdown in Uber's near-term results if deceptive practices are confirmed, and the company may face challenges in stock performance due to economic uncertainties linked to tariffs [5]. - Despite interest from investors like Bill Ackman, Uber's stock is considered risky and dependent on sustained double-digit growth, with potential long-term threats from autonomous robotaxis [4].