The share price of Singapore ride-hailing and carpooling company Ryde dropped over 80% in just one week. The stock closed at US$2.08 on September 12, down from US$13.11 on September 11, and US$12.14 just a week earlier. Its peak share price reached US$22.49 on September 11.

This substantial decline followed a surge in trading activity. Analysts reported that daily trades increased from between 20,000 and 200,000 shares to over a million shares in early September. On September 11 alone, nearly nine million shares were traded, resulting in a sharp drop of more than 60%.

Ryde listed on the New York Stock Exchange (NYSE) on March 6 at US$4. The initial public offering generated US$12 million.

Experts attribute this volatility to lower liquidity and weaker regulatory oversight in small technology firms. Professor Ben Charoenwong noted that similar price behavior has been observed in other micro-cap stocks, especially those undergoing major transitions like SPAC mergers.

Market observers suggested that the steep decline could stem from investor speculation regarding potential negative developments or sell-offs by major investors. Furthermore, industry challenges, including rising operational costs and increasing regulatory pressures, threaten the profitability of ride-hailing companies.

Ryde has faced elevated share price fluctuations following its secondary listing in Germany in June.