Uber more valuable than U.S. car companies GM and Ford

Uber more valuable than U.S. car companies GM and Ford
Ride-sharing service Uber, known for its mobile app that allows users to hail a ride using their handset, is making investors drool. The company is seeking to raise $2.1 billion in financing at a valuation of $62.5 billion. Yes, that is billion with a "b." What makes the valuation of this private company stand out, is that it surpasses the market capitalization of a couple of auto companies that you might be familiar with.

As of the Friday close of the New York Stock Exchange, General Motors and Ford were each valued in the neighborhood of $56.4 billion. In addition to the two American behemoths, Uber's valuation exceeds the market cap of Honda. These manufacturing companies produce goods as opposed to the services provided by Uber. As a result, the auto companies have plenty of tangible assets including factories, machinery, tools, dies and inventory. 

As a private company, Uber is not required to release its financial results to the public. According to leaked documents, the company has been losing money. Revenue though, has been soaring. For the full year of 2013, Uber allegedly took in $104 million. That figure could reach as high as $2 billion in 2015, according to analysts. And that growth could even gain momentum as the firm looks to expand into a logistics company with package delivery. In some markets, it has started to deliver food.

Some pretty good investors have placed serious bets on Uber. Microsoft has $100 million in the company, and others like Tiger Global Management and T. Rowe Price are interested in getting some skin in the game. The payoff for all of these companies and funds will come when Uber finally goes public in what might end up as one of the largest IPOs in history.

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source: NYPost

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32 Comments

1. Deca-core

Posts: 75; Member since: Nov 20, 2015

wow..thats amazing.

11. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

Uber has been banned in several EU countries. They got a hard work to do in order to win back the trust of these countries.

19. RebelwithoutaClue

Posts: 5474; Member since: Apr 05, 2013

The Uber office has been raided twice already because of criminal investigations. It's not doing so well in my country.

15. Bernoulli

Posts: 4358; Member since: Sep 01, 2012

That's what she said.

2. joevsyou

Posts: 1091; Member since: Feb 28, 2015

everyone requires some form of transportation but not everyone requires a car nor can afford to drop 20K+ vs $10 on a uber

6. ibend

Posts: 6747; Member since: Sep 30, 2014

nor have proper skill do drive.. wish they also make car that focused on gas/electric efficiency, since top speed and engine power is pretty much useless inside crowded city :-/

9. TheOriginal

Posts: 49; Member since: Oct 28, 2015

where have you been. every car made these days is focused on gas mileage, even ferrari and porsche. ever heard of C.A.F.E. regulations? if you havent then you should google it and learn something..

20. RebelwithoutaClue

Posts: 5474; Member since: Apr 05, 2013

If you know anything about CAFE regulations, it's all about fuel consumption averages over the entire fleet. Since Ferrari belongs to Fiat, they take into account the Fiat 500's as well. So as long as they sell more cheap running smaller cars, the Ferraris can still be gas guzzlers. Same goes for the Lamborghini that belongs to Volkswagen.

21. TheOriginal

Posts: 49; Member since: Oct 28, 2015

and thats why there are 3 times as many turbo'd cars than 10 years ago (ferrari included) its easier to get an extra 5-10mpg out of a sports car than it is to get an extra 2 or 3 out of an eco box and it makes a bigger difference to lower those that are high. so yes they are working at making all cars economical.

23. RebelwithoutaClue

Posts: 5474; Member since: Apr 05, 2013

They are switching from big V8's to smaller V6 with either turbo's or superchargers. And yes they are more economical without losing horsepowers. But that doesn't make them the most fuel efficient means of transportation. Just means they can still have top speed power monsters and not raise the average fuel consumption over the entire line too much. Not to mention a V6 is a lot lighter than a V8, so the power to weight ratio is up too.

24. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

V6 drains fuel like he**. V10 all the way!

10. TheOriginal

Posts: 49; Member since: Oct 28, 2015

with reliable used cars starting at below $1000 the only people who cant afford a car are those who dont have a job. and bc of welfare even some of them can.

3. bur60

Posts: 981; Member since: Jul 07, 2014

Ofc it's succesfull. Uber goes to other countries and starts with a low cut from the drivers. Before you know it the cut is already doubled and you make way less as a driver. But just like Apple they have the power to do that because they will make money anyway, everybody likes it. Besides that, they are quite innovative. Coming with new things for the cab world.

4. bucky

Posts: 3771; Member since: Sep 30, 2009

Friends that have used uber absolutely love it. The cab companies needs a good kick because they started to really gouge and be extremely rude.

5. Bernoulli

Posts: 4358; Member since: Sep 01, 2012

It's amazing to think that a company that owns absolutely no cars is worth more than one that makes them, especially since everything is app based!

12. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

Weird world we live in!

14. tacarat

Posts: 850; Member since: Apr 22, 2013

Superman 2.

16. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Because of two things. User supplied information. We are willingly giving them all the info to make it valuable. What is more valuable...a car sale that will net revenue of maybe 5k, for 5-10yrs, putting it at maybe...1k a year. Or get 5k per person in ad revenue for your persons information every year? I cannot believe the amount of info we give away for free, and then get shocked why they are worth so much.

7. mixedfish

Posts: 1542; Member since: Nov 17, 2013

Would not invest in a company that is on the knife edge of having everything disappear overnight if governments decide it's an illegal taxi service. Investing in the stock offer would be a gamble.

8. Kary1

Posts: 300; Member since: Jun 26, 2015

Uber is not more valuable, it has a higher market cap. It has a higher market cap because there are some entities that have overpaid for Uber stock.

13. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

Do you even understand what you post? High market cap leads a company to more valuability! Have a look at Google's Android OS!

17. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

man why did you tell me to look at google, now I have to reset my phone because of malware...;) I kid. Yes peoples information is more valuable than cold hard assets which is mind boggling.

30. Kary1

Posts: 300; Member since: Jun 26, 2015

Let me explain this in a way that you might be able to understand. If I go to the Secretary of State's Office and create a corporation, and then without doing anything else sell .01% of the stock in that corporation to Gary for $10,000, that doesn't mean I have a corporation worth $100 million. It means Gary is a fool.

28. Kary1

Posts: 300; Member since: Jun 26, 2015

I understand what I post. Do you understand English? I was trying to make a point that the stock is over-valued. That a few entities have greatly over-paid investing in Uber. It's not like Uber stock is publicly traded, so market cap is pretty useless as a measure of anything. But in any case, try to take a remedial course in English comprehension. The point was pretty clear. Not sure what the Android OS has to do with anything. If we're throwing out random thoughts, take a look at the 2016 tractor offerings. Pretty sweet!

18. darkkjedii

Posts: 30720; Member since: Feb 05, 2011

Uber doesn't make that beautiful, bad ass, C7 Z06 Corvette. Nuff said.

22. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Or the gt350r or gt mmmm

31. darkkjedii

Posts: 30720; Member since: Feb 05, 2011

Fords bad boy. They have the new GT out now right?

25. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

Still Uber makes big cash using them!

32. Kary1

Posts: 300; Member since: Jun 26, 2015

You're assuming Uber makes money.

26. flavius22

Posts: 218; Member since: Aug 23, 2015

This bubble is getting quite big but remains a buble

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