Investors abandon Uber, Lyft following one CEO's ominous comments

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Uber (NYSE:UBER) and its top rival, Lyft (NASDAQ:LYFT) found the going rough at the start of the week as both of the ride-hailing companies’ shares were mired in the red following some cautious comments from Uber’s (UBER) chief executive.

In an email to Uber (UBER) employees, CEO Dara Khosrowshahi said the company would initiate an era of belt tightening that will most notably effect its hiring policies and marketing efforts. Citing what he called a “seismic shift” in its industry, Khosrowshahi told Uber (UBER) employees that “the next period [of business] will be different, and it will require a different approach.” Khosrowshahi made his comments in a letter to Uber (UBER) employees that was obtained by CNBC.

Khosrowshahi appeared to suggest that the “long and unprecedented bull run” that many Uber (UBER) employees have known is coming to an end, and new philosophies will be implemented to ensure the company’s future.

In his letter to Uber (UBER) employees, Khosrowshahi said such things as the company will treat hiring as “a privilege”, it will be “even more hardcore” about costs and expenses, and that while Uber (UBER) is serving “multi trillion-dollar markets” doing so is “irrelevant if it doesn’t translate into profit.”

With those comments weighing on investors’ minds, Uber (UBER) shares on Monday dropped by more than 7%, to a 52-week-low of $23.94 on volume of more than 31 million shares exchanged. The company averages 35.7 million shares traded on a daily basis.

Meanwhile, Lyft (LYFT) fell more than 5%, to its own 52-week-low of $19.85 share. Lyft’s (LYFT) losses adding to woes that started last week after the company gave a disappointing business outlook and said it would increase spending in an effort to attract more drivers