Uber going Public but never made a profit !
Uber Inc., the world's most valuable startup valued at more than $78 billion is heading towards at IOP in May this year.
Started out of a problem experienced by the founders Travis Kalanick and Garret Camp who didn't get a cab one night while heading towards their hotel. This led them to start Uber and disrupt the transportation industry with a simple idea of bringing onboard demand and supply on an app.
Present in more than 600 cities across the globe under the leadership of is founder Travis Kalanick who had to leave Uber in 2016 forced by its board and investors due to series of scandals that himself and the company had faced in various countries.
It took 9 months for Uber to find their leader in Dara Khosrowshahi who built Expedia into a global travel powerhouse. Until then Uber had sold their business in China, SEA, Russia to DiDi, Grab and Yandex due to the stiff competition, sold and became an investor in their business in respective countries.
Under Dara, Uber had risen the company and diversified it into different vertical moving away with its sole dependence from cab business and initiated self-driving cars, Uber eats, Uber Freight, to become one point of the solution in the transportation space.
Dara was tasked with even more bigger responsibility of making the company ready for an IPO too.
Uber had made several acquisitions since inception. It had recently acquired Careem, Deliveroo, Otto and SwipeLabs among others.
In a situation like this where Uber's losses had increased at an increasing rate with accelerated revenue which was clocked in at more than $ 11 billion.
Aswath Damodaran says these are hard to be valued and tough to be trusted with their financial viability as they haven't yet figured out a revenue model till now. The business is based on deep discounting and there is no hook that could keep customers coming back for more. They need it today because they don't have bikes or no access to their transportation what fo they have their own transport or if any other competitor comes onboard? still, the business exists on discounts? No right?
Uber is hoping to catch a ride to the stock market, having just filed for an IPO (initial public offering, when a company first sells its shares to the public).
Uber, and the bankers helping them reckon the whole company is worth $90-100bn, despite never having reported a profit from its operations alone.
So how can that be? Essentially they are asking investors to believe that once the competition has died down, Uber will still be top-dog of the ride-hailing market, and will finally be making the big bucks that come with the territory.
Uber is following in the footsteps of Lyft, which IPO'd at the end of March but seeing a decline in its share price since then. Will the situation still remains to be the same for Uber to the worldwide credibility it enjoys will better the situation? This will be an iconic and much-awaited IPO after China's Alibaba which raised $24 billion and Uber is expected to raise more than that at a valuation which will surpass $100 Billion.
With insights by Chartrdaily.
Started out of a problem experienced by the founders Travis Kalanick and Garret Camp who didn't get a cab one night while heading towards their hotel. This led them to start Uber and disrupt the transportation industry with a simple idea of bringing onboard demand and supply on an app.
Present in more than 600 cities across the globe under the leadership of is founder Travis Kalanick who had to leave Uber in 2016 forced by its board and investors due to series of scandals that himself and the company had faced in various countries.
It took 9 months for Uber to find their leader in Dara Khosrowshahi who built Expedia into a global travel powerhouse. Until then Uber had sold their business in China, SEA, Russia to DiDi, Grab and Yandex due to the stiff competition, sold and became an investor in their business in respective countries.
Under Dara, Uber had risen the company and diversified it into different vertical moving away with its sole dependence from cab business and initiated self-driving cars, Uber eats, Uber Freight, to become one point of the solution in the transportation space.
Dara was tasked with even more bigger responsibility of making the company ready for an IPO too.
Uber had made several acquisitions since inception. It had recently acquired Careem, Deliveroo, Otto and SwipeLabs among others.
In a situation like this where Uber's losses had increased at an increasing rate with accelerated revenue which was clocked in at more than $ 11 billion.
Aswath Damodaran says these are hard to be valued and tough to be trusted with their financial viability as they haven't yet figured out a revenue model till now. The business is based on deep discounting and there is no hook that could keep customers coming back for more. They need it today because they don't have bikes or no access to their transportation what fo they have their own transport or if any other competitor comes onboard? still, the business exists on discounts? No right?
Uber is hoping to catch a ride to the stock market, having just filed for an IPO (initial public offering, when a company first sells its shares to the public).
Uber, and the bankers helping them reckon the whole company is worth $90-100bn, despite never having reported a profit from its operations alone.
So how can that be? Essentially they are asking investors to believe that once the competition has died down, Uber will still be top-dog of the ride-hailing market, and will finally be making the big bucks that come with the territory.
Uber is following in the footsteps of Lyft, which IPO'd at the end of March but seeing a decline in its share price since then. Will the situation still remains to be the same for Uber to the worldwide credibility it enjoys will better the situation? This will be an iconic and much-awaited IPO after China's Alibaba which raised $24 billion and Uber is expected to raise more than that at a valuation which will surpass $100 Billion.
With insights by Chartrdaily.
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