Uber Could Be the Biggest IPO of 2015
There is little doubt that Uber will take advantage of their rocketing success and market evaluation currently at US $41 Billion, which is bigger than Twitter at US $31 Billion
A $1.2 billion round of funding in December valued Uber at more than $41 billion. It operates in more than 250 cities across 55 countries. Uber has now raised eight times as much capital as its closest competitor, Lyft Inc.
“At this valuation, investors appear to be thinking that when Uber goes public, it might be worth $80 billion to $100 billion,” CB Insights’ Chief Executive Officer Anand Sanwal told Bloomberg. “This type of mega-financing affords Uber a great deal of flexibility in terms of when they might go public.”
Ubers is banned in Many Cities
Their claim that the taxi laws are outdated, hides the truth than many of their drivers are not properly insured in case and do not meet the required licensing and safety requirements.
US cities and lawmakers are taking note of the activities of Uber and some are looking to ban their services for just these reasons.
Nevada has suspended Uber Portland, Oregon ahs banned the service these are being appealed.
Denmark, Brussels and Madrid Spain have banned the service.
Man Sues Uber Says it was his idea
Kevin Halpern sued Uber, Kalanick and several early investors in the company in San Francisco Superior Court on Thursday, accusing them of misappropriation of trade secrets and breach of contract. The complaint claims he suffered damages in excess of $1 billion.
Uber, the San Francisco-based ride sharing company that was valued at $40 billion in its last funding round, called the claims “completely baseless” and vowed to fight them.
Halpern founded a company called Celluride Wireless in 2003, six years before Uber was treated.
In a video on YouTube, Halpern said, “Kalanick created an exact replica of Celluride and called it Uber.”
Uber Convenient and Forward Thinking
According to IPONewsWire There is no doubt that Uber has taken the reigns in the rideshare services and has taken Lyft on in a brutal battle and won for the most part.
They have built on the technology that has enabled the Uber company to out smart, out service and out do the Taxi services in a disruptive totally unseen way. 3 years ago the taxi industry would not have foreseen this as being a reality.
Competition and forward thinking are great, but there are many legal obstacles a head for Uber if it is to not hit critical mass and implode.
How long will the Uber Ride last?
Remember Groupon, currently trading at $7.20, it launched at $26 and has never reached higher. This should be a caution for Uber to not get too arrogant.
Potential Investor should also be fully aware that currently they are a landmine of legal battles and trade practices. This means that they may never reach the heights they are potentially valued at, and so are while they raised they $1.2 billion, the rumors and the anticipation will persist.
Uber may have set itself up to fail
Uber has had engaged in some questionable methods and activities. As it the prospect of an Uber IPO gains momentum, it will also leave the company open to scrutiny and audits.
Will Uber survive in a world where their technology and business service can be replicated with ease by programmers, business development and marketing. Is there more competition on the horizon for Uber? Does Lyft have a backup plan or some other service.
Uber should be able strike while the iron is hot, but maybe there are being advised not too. If they try and IPO and fail to hit the mark, then the landscape is left open and the playing field is level.