Uber reportedly worth more than Ford, GM, Tesla–combined
With Uber expected to go public next year, banks hoping to arrange one of the largest initial public offerings of all time are valuing the ride-hailing company as high as $120 billion, the Wall Street Journal reports. That’s nearly double the estimated $62 billion valuation placed on Uber this spring and roughly equal to the stock market values of Ford, GM and Tesla combined.
Despite the enormous payoff some investors see in Uber, it continues to hemorrhage money. The ride-share company lost $800 million in the third quarter, following a $1.2 billion loss in the first half of the year, according to reports. It would likely need to narrow those losses before staging in initial public offering.
An Uber spokesman declined to comment. The company needs to go public by the end of 2019 under terms of an agreement with Japanese conglomerate SoftBank, a major investor.
Boosting Uber’s valuation is the company’s stake in other ride-hailing services, including Didi Chuxing in China and GrabTaxi in India. Food-delivery service UberEats also operates in about 500 cities worldwide and is valued at nearly $20 billion, the Journal reported.
Uber’s sky-high valuation hasn’t insulated it from a public-perception problem in some cities, where it is blamed for increasing traffic congestion and lowering taxi drivers’ earnings. In August, after a spate of taxi-driver suicides, New York City imposed a temporary cap on new drivers joining the platform.
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