Despite all the bans and legal battles the company is waging, Uber has recently completed a round of funding that is close to $1 billion, which puts the company's valuation at around $51 billion.
Now Uber got to that 50 billion mark a lot faster than Facebook did, which is boggling everybody's mind, as it should. Travis Kalanick puts out these ridiculous revenue projections, but is any of that actually true? Are investors, including Microsoft in this latest round, losing their minds?
The thing is, so many things about Uber is still murky. Back when Uber's revenue figures were leaked, everyone was astonished about how much money it was making. But if you've got half a brain cell for accounting, you know that it doesn't mean jack squat. It is easily likely that Uber is bleeding cash faster than the Chinese stock market. Why else would it need such a huge funding round?
Don't get me wrong though. Uber is a fantastic app. It is a beautiful and elegant alternative to hailing a cab. You don't have to do a thing when you call for a Uber. Just get in, and get out. Easy Peasy. I used to be a huge Uber skeptic. Yet, it only took one ride to convince me otherwise. It is just so convenient, especially for city dwellers.
Still though, come on. This $51 billion is absolutely Spartan, as in madness. It could just likely be a house of cards waiting to fall. At this point, what company would be willing to spend that much money to acquire Uber? If that doesn't happen, where can it go next then? Another funding round of $2, $3 billion? How much money can these investors blow?
So then, it is likely that the next destination for Uber would be an IPO, but that would be a disaster. Once it is out in the public, it would be subject to so many other factors, such as a wider public scrutiny, and that it would have to file strict accounting statements. So far, Uber has been able to hide behind the curtain of private investments, which are a lot less subject to public sentiments and enigmatic revenue calculations. Yet, once Uber goes beyond, what horrors could be unleashed, we can only guess from history.
Could Uber be the 'pets.com' of our time? Suffer a rocking meltdown after its roller coaster ride? Or will it be the universal ride-sharing institution that it poises itself to be? Chances are though, nothing will probably change. Come around this time again, and we hear a news about a new $60 billion valuation along with a $2 billion funding round, let's not act surprised anymore. We already know now, these start-up funders have gone crazy.