advertisement
advertisement
advertisement

Uber’s IPO was a failure by Uber’s own 2015 metric, says Susan Fowler

Uber’s IPO was a failure by Uber’s own 2015 metric, says Susan Fowler
Uber CEO, Dara Khosrowshahi (center). [Photo: courtesy of NYSE]

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:

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.

advertisement
advertisement