Longer Wait for Uber IPO
Investors are hungry for an Uber IPO—and for good reason.
Uber Technologies, Inc. is an industry disruptor. In a few short years since the company launched, Uber has overtaken taxis as the favored way to hitch a ride. Although Uber has been met with some resistance in some cities, the company is expanding around the world, which should spur growth for years to come.
But for investors who were hoping that an Uber IPO would happen in 2016, you’re going to have to wait a bit longer.
Uber co-founder and CEO Travis Kalanick told CNBC’s Squawk Box that he’s in no rush to take the company public, despite pressure to do so. In fact, he says that he’s going to take as long as possible to go public. Kalanick reasoned that Uber does not need investor liquidity at the moment and that the company is instead focused on the product and on innovation.
“We’re five-and-a-half years old and it’s a little early in our lifecycle to go there,” Kalanick said. “We’ll go there eventually, but we have to find liquidity for these folks [investors].” (Source: “Uber CEO Travis Kalanick takes stand against critics who want IPO,” CNBC, April 27, 2016.)
His comments came on the heels of another interview last month with CNBC in which Kalanick also said that investors shouldn’t expect an IPO anytime soon. (Source: “Uber IPO uber-unlikely: CEO Kalanick,” CNBC, March 29, 2016.)
And there really is no reason to except to satisfy hungry investors. Kalanick added that he has raised about $10.0 billion over the last 18 months. (Source: Ibid.)
Uber is one of the most valuable start-ups in the world. It’s already valued at a whopping $51.0 billion after seven rounds of funding since it’s launch. (Source: “Will Uber Be the Hottest IPO of 2016?” Zacks, April 25, 2016.) CNBC pegs Uber’s valuation a bit higher at $62.0 billion.
Uber is also already rumored to be raking in about $2.0 billion in revenue. (Source: Ibid.) That’s not bad for a company that is only five-and-a-half years old.
What makes Uber unique is that it’s not just a taxi service; it’s also a mobile Internet company that is constantly innovating. The company even has plans to unleash an army of driverless cars by the end of the next decade.
But unfortunately for investors, you’re going to have to wait a bit longer to get in on the action with Uber.