Has Uber set the Stage for an IPO in 2017 ?
Travis Kalanick stepped down last night as CEO of Uber after pressure from shareholders. This is the time that Uber should gear up for its IPO before the unicorn and its’ investors loose out.
Travis Kalanick who, since 2009 has been CEO of Uber, was adamant that an initial public offering was not on his agenda for many years. He was confident that round after round of funding would come pouring in. Investors in the company eagerly awaited the IPO of the century for the $68 Billion company valuation, but were left sitting holding on to their shares again and again.
The bad news this year for Uber has been constant headlines, sexual harassment, anti-regulation lawsuits, defamation, Travis publicly shown argument with one of their drivers and a host of high level exits from the company leaving the king without a court.
Frustration levels were at boiling point within the Uber Camp for a long time. Recent issues include:
- The failure in the Chinese market
- Last years investment from a Saudi firm angered the community.
- Loss of their key innovation expert from Google
- Halting of their driverless car systems
- Regulations Issues with many states
- Drivers filing suits against Uber for payments in NY, where Uber withheld fees for drivers.
- Bad press and #boycottuber campaigns growing on social media
- Rate hikes in London after the terrorist attacks
- Uber drivers getting more frustrated with their payment terms
- Bad publicity from several sexual offences by drivers though you can not blame Uber company for this.
Uber needs to IPO in late 2017
Shareholders want an IPO, the investors want out before the golden calf is left out to dry and turn to leather. Uber should and most likely will announce the restructuring of the company immediatley and the IPO date for later this year giving NASDAQ and jolt to their lagging tickers.
Shares of Uber were estimated to start at $170 last year but this year a $130 – $150 share price would be expected. Investors see the landscape, Lyft is growing and more companies including GM have taken sides with David versus Goliath.
The rideshare business is here to stay, but the innovation and growth are reaching critical limits. Taxi companies cannot compete with the new millennial culture.
Uber should now set the record straight
Uber needs to bring back confidence in their company and build back from a year of disastrous missteps and bad publicity. The company needs to give shareholders their day on Wall Street and get back to business without distractions.
If Uber is to do the right thing it needs to be a better culture for their drivers, employees, and shareholders. The customers they have lost may never be back but they should look to build a better more socially aware and friendly environment.