Uber's last valuation is 12x ($66bn = $5.5bn x 12) on annual revenue growth of 275% - 12x doesn't seem an unreasonable multiple.
The valuation isn't artificially high, it's a result of an unprecedented growth curve.
The valuation isn't artificially high, it's a result of an unprecedented growth curve.
And pay incentives for drivers are not only the surge charges but how many completed rides. That's likely to make sure there's enough supply on the road.
Yes, this data is limited. But all signs point towards Uber hemorrhaging money with no easy way of becoming profitable. And we know that competition can easily swoop in by looking at Austin, where Uber and Lyft left. It's a race to the bottom until self-driving cars are a reality.
"... broadly speaking the WTO agreement allows governments to act against dumping where there is genuine (“material”) injury to the competing domestic industry." https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm8_e....
Even if they can, they won't have a structural moat. Too many others are developing this technology. Either someone will disintermediate private self-driving car owners a la AirBNB, or other tech companies will run fleets, or the car manufacturers will run fleets in the manner of GE's engine-hours program.
Uber is the greatest transfer of wealth from VCs to middle-class professionals in history.