We’re well into day two of Uber as a public company, and things aren’t looking much better for the ride-hailing service. Its debut day saw the stock price fall below where it was priced–and it’s going down again today.
Uber’s market capitalization is currently a little over $62 billion. That’s nothing to sneeze at, but it turns out, it’s nowhere near where the company hoped it would debut. Today, former Uber engineer turned whistleblower turned New York Times editor Susan Fowler tweeted a little tidbit about her tenure at the company:
The Uber IPO news reminds me of an email I received from them in 2015, when they offered me a job: “while a $51B in pre-IPO valuation is great, we are no ways looking to IPO here. If we do not make it to a $200B valuation, I think most at Uber would feel as though we failed.”
— Susan Fowler (@susanthesquark) May 13, 2019
According to this email she says she received, Uber boasted to potential employees (that is, Fowler) that if its IPO didn’t have a pre-IPO valuation of over $200 billion it would widely be considered a failure. To put this into perspective, at Uber’s set stock price, it would have received a valuation of $75.46 billion–well below that self-imposed metric. And with Wall Street’s current downward spiral, the company’s value is falling even below that.
Companies are, of course, wont to boast, especially during the startup heyday that was only a few years ago. Hindsight is always 20/20. But this tidbit does certainly highlight how the mentality has changed, and puts Uber’s initial performance into a much more critical perspective.
I reached out to Uber for comment, and will update this post if I hear back.