P2P Transport says Uber surge pricing a swing factor | afr

P2P Transport has been positioning itself as a beneficiary of the growth of the personal transport market in Australia by providing the vehicles to drivers in both camps, but it has battled to win over investors after its 2017-18 profit and revenue results were below prospectus forecasts.

P2P Transport listed on the ASX in mid-December, 2017 after raising almost $30 million in a float with an issue price of $1.32 per share. The shares are now trading 40 per cent below that price at around 79¢.

Mr Varga said it would take time for the sharemarket to become comfortable with the strategies of P2P Transport. The company had brought forward some of its plans and was a pioneer in the personal transport market in Australia.

“The core model is intact and makes sense,” Mr Varga said.

“We have accelerated a lot of our activities,” he said. He said taxis were using the surge pricing model of Uber as a way of promoting their own services and were making headway in winning back some market share. “No surge pricing does make a difference,” he said.

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P2P Transport says Uber surge pricing a swing factor | afr.com.