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How Uber’s IPO Valuation Measures Up

By Katharina Buchholz

Uber stocks are hitting Wall Street today in an IPO that valued the company at $82.4 billion. Uber is selling initial shares at $45 a piece and raised  $8.1 billion in the biggest IPO in five years since Alibaba went public in 2014 in an even larger public offering.

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Fellow rideshare company Lyft, which went public in March in a somewhat smaller IPO, had sold shares for a much higher USUS$72, but prices came crashing down soon after. The release of the Q1 number didn’t do anything to stop the downward spiral because of negative earnings. The poor performance of its competitor has reportedly made some buyers wary of Uber stock also.

Yet, Lyft stock has only been public for some weeks. A look at the Facebook stock, which was introduced to the NASDAQ in 2012, shows how success can come over time. Shares of the company were sold at $38 on day one and reported losses until mid-2013. Currently, they are trading at approximately US$170 a piece.

Monthly number of Uber’s active users worldwide from 2016 to 2019

In 2018, 95 million people used the Uber app on a monthly basis. Uber is one of the most popular ridesharing apps in the world. Based in San Francisco, their global net revenue amounted to 11.3 billion U.S. dollars. Contributing to their revenue is the 5.23 billion rides that were delivered via the Uber app in that year. In the fourth quarter of 2018, Uber generated almost 14.2 billion U.S. dollars in gross bookings worldwide.

Infographic: How Uber's IPO Valuation Measures Up | Statista
You will find more infographics at Statista

Uber Technologies- Statistics & Facts

The sharing economy market consists of companies which provide services to connect owners of an item with people who wish to use that item. In 2017, the revenue of platform providers in the global sharing economy amounted to 18.6 billion U.S. dollars. Furthermore, popularity of sharing economy services varies by country. As of April 2018, 47 percent of respondents in the United States reported that they have used sharing economy services. In 2022, it is expected that the Americas will account for 57.2 percent of the total revenue of the sharing economy market. The ride-hailing market is an important part of the sharing economy market. As of May 2018, Uber was the leading ride-hailing operator worldwide, with a market value of 72 billion U.S. dollars.

Uber is an American peer-to-peer ridesharing and transportation network company headquartered in San Francisco, California. Founded in 2009, Uber has grown to become a prominent sharing economy services provider; boasting approximately 41.8 million users in the United States in March 2018. As of February 2018, Uber rideshare drivers accounted for 87.6 percent of the ride-hailing services market in the United States. In that same year, the average hourly earnings of rideshare drivers in the United States was 14.74 U.S. dollars for zero to 500 trips.

In 2017, the transportation network company generated 7.5 billion U.S. dollars in net revenue worldwide. As of July 2017, the leading ridesharing company had received investments amounting to approximately 11.56 billion U.S. dollars. Uber’s gross booking volume has seen a year-on-year increase. In the second quarter of 2018, Uber generated gross bookings of 12 billion U.S. dollars worldwide.

Popularity of Uber in the United States is at an all-time high. During a survey in May 2018, 76 percent of the respondents stated that they were familiar with ridesharing services provided by Uber. In general, familiarity of sharing economy services in the United States has seen a year-on-year growth. In 2018, 83 percent of respondents stated that they were familiar with at least one sharing economy service. Also, consumers recognize benefits they can accrue from using sharing economy services. During a survey in 2018, 60 percent of consumers in the United States stated that they recognize that sharing economy services can be cheaper for users.



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