Uber IPO Proposals Value Company at $120 Billion


Ride-hailing company Uber Technologies Inc could be valued at $120 billion, when it finally goes public next year according to proposals made by U.S. banks bidding to run the offering. That value would be almost double what Uber was valued at in a fundraising round earlier this year. 

Uber has been eyeing a potential IPO in 2019 for some time now.  Dara Khosrowshahi, who took over as chief executive last year, said in September that Uber was on track for a 2019 IPO, adding that he was not concerned if Lyft went public first because he expected enough demand for both companies.

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Their growth, margins, and future revenue all need to be far too good to justify a valuation of 120 billion, and they have a pretty shallow moat imo with their big network and large number of drivers. They are currently unprofitable. With $7.5 billion of annual revenue in 2017. Even if we double that to $15 billion in 2018 Uber currently loses money. 

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I don't see how the business model will ever be profitable. The barriers to entry are not that high and there are numerous competitors. The new features are easy to copy as well. Uber is great but I doubt this valuation is reasonable.

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The driver-less car is coming, and I don't think a high profile accident is likely to stall its adoption. The real problem here is that Uber is way behind the competitors, such as Waymo in developing their own technology. Uber's competitors will take over its target market. 

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My guess is that Waymo is going to have at least a 1-year head start in every robotaxi market over all its competitors, including Tesla. In that time, people will switch from Uber and Lyft to the Waymo app in those markets en masse.

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Talking about autonomous cars, Uber had a bad time. But nobody has a monopoly on autonomous driving technology. Anybody with capital can develop an autonomous OS given enough time. And they have a lot of time. Autonomous cars won't take over the world in at least 5-10 years. Human driven rideshare vehicles will matter for some time.

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Uber is involved in everything that either doesn't make money or make the suppliers go out of business. 

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Uber going public = higher rates.

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Good for them. Looks like they're getting their sh*t together. After Travis' fall out and the legal battles thought it was looking a bit grim for Uber. Excited to see self driving cars in the upcoming years and rolling out the new scooter service. 

 

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