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Uber goes public

Uber is about to list on the Stock Exchange, at a value of approximately $100 billion.  I find it hard to see the value in a company that is not really making money and that is having issues, in terms of obtaining permission, to work in numerous cities around the world, but I was wrong on Facebook and I am probably wrong on this one as well. 

To me, it is all the signs of a Stock Market that is really becoming overheated, with companies like Lyft, and now Uber, coming to the market at sky-high valuations.  If you invested in Uber a long time ago on the private market, then of course this is going to be your time to celebrate, your big payback time, but I just don’t see what real profits a new shareholder in Uber is going to make.  It is not a guaranteed winner like Amazon or Google is in my opinion.  If I was to consider buying shares in a company like Uber then I would look at a company that owns Uber shares, but is trading below its full value, such as Softbank.  The founder of Softbank bet on Bill Gates and Microsoft early, he bet on Steve Jobs before the iPhone came out, and he has a reputation for really picking out tomorrow’s winners and Softbank is currently trading at a lower value than the sum of its parts and that would be something I would consider, long ahead of Uber.  What are your thoughts on Uber as a share – not Uber as a service or Uber as an investment for a driver of yours to drive a car for you?

Posted by Michael de Broglio on Tuesday 07-May-19 Share on Facebook   Tweet It

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Comments

cornelie  said:
on Tuesday 11-Jun-19 03:16 PM
I would invest in a uber driver driving a car for me I can see this is the beginning of big things regardless the bad reputation.

Tersia  said:
on Wednesday 05-Jun-19 09:08 AM
In my opinion I would not invest in Uber in South-Africa. To many bad vibes around it. Other countries might be a different story.

Sinead  said:
on Tuesday 04-Jun-19 12:30 PM
I wonder if Uber has as bad a reputation in other countries that use the service, as they do in South Africa. If there are only good reviews, then it is probably still a good investment as it is surely still a growing company. I cannot be sure though, especially if you say there are cities around the world not giving permission.

Shristi  said:
on Sunday 02-Jun-19 07:02 PM
I personally would not invest in Uber as I don't think it is a good investment. But if you a gambler I would say take the chance as the transport industry is very volatile and you might just get lucky!

Ashleigh  said:
on Friday 31-May-19 09:26 AM
I don't really utilize Uber and have not kept up with all that they offer in order to determine whether they are worth investing in.

candice  said:
on Friday 31-May-19 09:22 AM
I think Uber is great especially for people that do not own a car and other public transport that we have is unreliable as they brake down most of the time. atleast with uber you can get t your destiny on time.

Jolene   said:
on Thursday 30-May-19 08:33 AM
I won't invest in Uber I think there are other options I would rather consider.

Bianca Taljaard  said:
on Thursday 30-May-19 07:25 AM
After the recent stories about Uber i will never i invest in them, neither will i make use of their service

Thabitha  said:
on Wednesday 29-May-19 07:58 AM
With the market you are always taking risk, sometimes is not wise to take that risk sometimes is wise.

Zindy  said:
on Wednesday 29-May-19 07:45 AM
I have to admit i am indecisive if i would invest in such company, yes it started with a boom and grew very fast but the small increasing problems around the business is a its downfall. All the recent rape acts and the taxis that attack the Ubers. Even the uber eats app. i have to laugh i recently ordered through Uber eats and 2 hours later called the actual store and asked what was going on and the manager advised me they did collect the order but on his app they never checked to deliver so he basically took it for himself. So they sent a new order. How many more people is this happening to. Its slowly deteriorating.

Helen  said:
on Wednesday 29-May-19 07:37 AM
I will agree with Patrick and Tamaryn, the transport is always good investment and specially when there is no public transport available in the country. Also great business modal and proper structure makes big difference in the growth of the business on the market.

Michelle D  said:
on Friday 24-May-19 09:02 AM
Uber's potential for growth has become relatively stunted. I think that it will continue to be a successful company but unless they think of something new and innovative, it's probably going to be a pretty bad investment.

Kathryn  said:
on Thursday 23-May-19 11:44 AM
The business has not shown much growth over their last few quarters, and as a potential share holder this is a major red flag and as such the shares are not very appealing.

Natasha  said:
on Tuesday 21-May-19 09:01 AM
I don't think i will invest in Uber there is so many bad stories about Uber everywhere but like you say if you had a private investment in Uber a while back you would probably be celebrating now,but starting to invest in Uber now is a waste of time.

Claudia B  said:
on Tuesday 21-May-19 08:22 AM
I do think Uber could've been something good to use and to invest, but I guess everything has their bad side and good side in a business.

brumilde  said:
on Tuesday 21-May-19 07:36 AM
I still cant pay that much for Uber, the concept is amazing, but its very expensive. But if you don't have a car and don't want to take public transport there's your answer. But i have no idea how the stock marker works. Im sure it has its ups and downs, and those that are good at 'playing' the market makes a full time job out of it

Clare  said:
on Monday 20-May-19 04:40 PM
I must say when I stated, and if I have the Money I would to have invested into Uber, as I though it would be better the Taxi's but now since what I watched on Cart Blanch I don't really have my trust in Uber anymore.

Daniella  said:
on Monday 20-May-19 09:48 AM
I think if you haven't bought shares in Uber when they first started I wouldn't buy it now. I don't know much about investments and shares however it seems as though it would be quite expensive to buy now but it would be a great time to sell if you have.

Bianca N  said:
on Thursday 16-May-19 10:26 AM
I think that since Uber, there has been a lot of other companies that have come and offer similar services. I am just not sure that I would invest in it. Like you said, it is already having issues with gaining permission to work certain cities around the world. Also the list of scandals from 2010 to present makes Uber a not too attractive investment. Just read their 49 biggest scandals, there is too much drama in the open about this company.

Zandelee  said:
on Thursday 16-May-19 08:15 AM
I think that if you invested in Uber when it just started off it would definitely have paid off. However nowadays you see a lot more transport services affording transport at a more affordable rates. Also just saw the other day a new app called Bolt providing transport. So I think it will become difficult for Uber to compete with other transport services prices

Tamaryn  said:
on Wednesday 15-May-19 04:41 PM
I wouldn't invest in Uber. I think it's based on a great business model, but I don't think Uber the brand will be around forever or make the profits they hope to make.

Jadine Richards  said:
on Wednesday 15-May-19 08:16 AM
At this time I personally would not make the investment. One would have needed to get on that ride in the beginning. There is nowhere for Uber to go from this point. I highly doubt one would see a substantial return on investing now.

Liz  said:
on Tuesday 14-May-19 05:15 PM
It is apparent that investing in Uber at this late stage is not a good idea. I have read a few articles indicating that Uber is in fact losing money and that more trips would not be the answer as that would lead to more costs. It was beneficial to the people that invested in the beginning as can be seen from the extraordinary value of Lance Armstrong's shares at the moment, however now is not a good idea.

Prishani  said:
on Tuesday 14-May-19 04:57 PM
I think with technology that’s always improving and governments promising to improve public services, at this stage I would not invest in Uber. I think they have grown as much as they can in terms of innovation, taking into account Uber Eats.

Megan  said:
on Tuesday 14-May-19 02:51 PM
I agree with Alexis, when Uber came out it was a great investment but perhaps now it is too far from that. Although it is still growing, I don't think ones investment can grow as much now than then.

Dune  said:
on Tuesday 14-May-19 02:34 PM
I think Uber is very useful and a great service. I would however not invest in Uber, as I have read numerous articles indicating that they are loosing money?

sarah  said:
on Tuesday 14-May-19 12:45 PM
I saw that Lance Armstrong has invested$100,000 through venture capitalist Chris Sacca around 2009 when the company was valued at only $3.7 million. Today, Uber could be worth as much as $120 billion, according to banks readying the company for its IPO next year. I won't invest in Uber but I guess it is a gamble

Mathilda Du Preez  said:
on Monday 13-May-19 02:16 PM
According to (Baldwin, J. G. 2019 Investopedia)’ Uber stand as the face of a young and rapidly growing multibillion-dollar industry.’
I think Uber is worth the risk to invest in, as it could be on its way towards a valuation of more than $120 billion.

Alexis  said:
on Monday 13-May-19 02:12 PM
I feel that the time has long since past to be investing in Uber. As you say, maybe back in the day would have been a lot better and yes, one would have made a small fortune

Dasanya Naicker  said:
on Friday 10-May-19 05:16 PM
I don't think investing in Uber is a good option. Uber has never turned a profit and has either resorted to price slashing in order to keep up with competitors or invested its earnings in expansion.

Wanika Marais  said:
on Friday 10-May-19 05:10 PM
Even though I think Uber is a great service, I wouldn't bank on it as an investment, considering the dismal IPO performance of its US counterpart, Lyft, earlier this year.

Nikita  said:
on Friday 10-May-19 04:12 PM
I am not much of a gambler and to me buying shares is much of a gamble if you don't know what you are doing. I would probably not buy shares in Uber because I don't see much of a future for the company as there is way too much competition. If I had to buy shares I would stick to Tobacco and Sasol

Angelique Jurgens  said:
on Friday 10-May-19 04:06 PM
I am struggling to understand what exactly you are making money off but I am really not too clued up. I do know that Uber is very popular including ubereats. It is difficult for them to make money in my opinion - they do not actually own the vehicles. In order to make profit they basically have to keep a lot of people happy and invested. They must provide enough compensation to retain drivers, keep the fares low enough and safe for its passengers and then deliver value to their investors. It does sound risky but then again you never know until you take the risk. Words from people who can afford the risk*


Victoria  said:
on Friday 10-May-19 08:51 AM
I think Uber would be a good investment.

Fikile  said:
on Friday 10-May-19 08:40 AM
I don't use an Uber and i never have and by the looks of it i won't use it. In terms of investing or buying shares am all for it but i doubt i will do with the Uber, because already a lot of people don't want to use it anymore and some are scared for their lives and well people are going to stop using it because it can be manipulated easily and people get killed or even raped.

Lucretia  said:
on Thursday 09-May-19 09:16 AM
To be brutally honest, I don't know much about the stock market so I will refrain from commenting on this blog, would hate to embarrass myself :-)

Joyce  said:
on Tuesday 07-May-19 04:55 PM
I think Uber Company will be one of those successful companies in future and think that it won't be a waste investment for people wanting to by it's shares

Courtney  said:
on Tuesday 07-May-19 04:29 PM
That would be a very great investment! It's trustworthy, fast and the fastest way to get somewhere, transport wise.

Melissa van Tellingen   said:
on Tuesday 07-May-19 09:47 AM
I agree with Patrick. Thinking back 10 years, we didn't have the luxury of having Uber at a press of a button. It just makes live easier. I think it would be a great investment.

Michelle Smillie  said:
on Tuesday 07-May-19 08:25 AM
I think Uber is a great system to save money on transport costs. I think it will exist for a long time and be used more and more. I would think this would be a good investment.

patrick  said:
on Tuesday 07-May-19 07:53 AM
One can never go wrong with any investment on transport. People are moving away from owning cars. If they sort out their admin issues it will make a good investment opportunity.

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Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
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