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Will Uber Be the Hottest IPO of 2015?

Discussion in 'Uber Drivers Forum' started by Dreamer, Feb 7, 2015.

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  1. Dreamer

    Dreamer
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    Uber joins a varied list of companies with potential high profile IPOs in 2015. Airbnb, a room rental service, is worth an estimated $13 billion, which makes it worth more than well-known hotel chains Wyndham (WYN), Holiday Inn owner InterContinental Hotels (IHG), and Hyatt (H).

    Snapchat, the popular photo and video sharing app, is also seen as a hot IPO prospect. The reported value of the company is an estimated $10 billion.

    Spotify and Pinterest, the former a worldwide leader in digital music and the latter a site used to create digital pin boards, are both amid swirling rumors of high profile IPOs for 2015.

    This barely scratches the potential IPO offering for the year though, suggesting that we could see a very busy year for initial public offerings in a number of market sectors.

    http://www.zacks.com/stock/news/159834/will-uber-be-the-hottest-ipo-of-2015
     
  2. ClevelandUberRider

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    To answer OP's question, very likely. It has a winning formula. A good business model. Except the lowest,mbottom-fishing ride options (UberX) where the super low fares have made better drivers complain, but better drivers will, in the long run, opt to drive better and higher-priced ride options, leaving the bottom drivers driving the bottom passengers -- the way any market should work, namely, consumers and suppliers self-select into a market based on the price and quality of the product.
     
  3. Harry Flashman

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    better drivers wont continue with uber or other tncs. Most riders will use uberx as it the cheapest and uber wants people to choose uberx instead of catching the bus.

    In some cities uber starts with uber black then brings in uber x. uber black loses a heap of business due to the low rates of uber x.
    Uber select and suv is just a way of smothering the market.
     
  4. ClevelandUberRider

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    That's how markets work. You come in with a niche products, then, to increase revenue you have to either go mass or have some of your products catering to the mass market while keeping your niche customers happy.

    Facebook started very exclusive and high class. Harvard only. Then Ivy Leagues only. Then "West Coast Ivy League" and "Midwest Ivy League" also. Then national top school. Then private colleges and even state (public) universities. Then, high schools. Now, everybody!

    Mercedes has their entry level offerings for the poor but wannabes, to the point of even a person earning the median income in America can comfortably afford a Mercedes.

    Uber started with UberBlack. Then, to increase their top line, of course they have to go down to the mass market. But people who ride UberBlack usually will not ride UberX unless they are very cheap. It's like patrons who dine in fine dining places will usually not eat at fast food joints except when they feel very cheap or in moments of culinary weakness.

    Are all these the weakness or flaws of the businesses concerned?

    It is their financial backers pushing them for top line growth.

    Some niche market businesses choose to stay niche aand niche only, preferring to cater exclusively to their niche market. Such businesses are rare in the business world, and they have two characteristics, A, their size is small, and B, their profitability (ROE, return on equity) is high, usually more than double of those companies' (ROEs) chasing top line growth,
     
  5. ClevelandUberRider

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    Better drivers, if they have not already done so, may want to consider driving higher priced and more profitable drive options like UberSelect and UberSUV (more profitable on a per-trip basis, not necessarily on a per-hour or per-dat basis, due to lack of higher priced trips in certain cities).

    But some drivers should be careful in such upgrading because in any IC or OC work, one should prepare for the possibility that tomorrow, you may not be or wanting to be driving for TNCs anymore due to any of a myriad of reasons. That is the nature of IC or PC work. Any day you should be prepared to quit. So, if upgrading to another vehicle, drivers should bear in mind that they should be prepared for the fact that the new car they are getting to drive a higher priced option may not be needed for TNC soon, and their other business use and personal use will have to take up the slack.
     
  6. Chi1Abbie

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    Uber will never go IPO because their financial statements would be an embarrassment. Their revenue is being swallowed all the legal fees, regulation entanglements, and money to recruit new drivers. Once they start losing faith in their investors, they're finished.

    Case in point Detroit 30cents/mile...................That say's it all.
     
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