This page has been archived and commenting is disabled.

Uber Now Has A Higher Valuation Than Seagate, Chipotle, AutoZone, Alcoa And Half The S&P 500

Tyler Durden's picture




 

Moments ago, WSJ reported that venture-backed transportation company Uber said it had raised $1.2 billion in additional funding from investors that valued the on-demand car service at $18.2 billion, among the highest valuations ever for a venture-backed startup.

The eye-popping valuation, following weeks of competitive bidding among mutual-fund managers and venture-capital firms, underscores investor interest in the so-called sharing economy, where users sell time or resources to others. Uber connects drivers and riders through a smartphone app. It also highlights many investors' belief that Uber can expand the service into the backbone of a logistics and delivery network.

 

The latest funding round was led by three mutual-fund managers: Fidelity Investments, which invested about $425 million; Wellington Management, $209 million; and BlackRock Inc., $175 million. Four venture firms also participated, according to a person familiar with the matter: Summit Partners; Kleiner Perkins Caufield & Byers; Google Ventures, and Menlo Ventures.

One scary observation: when mutual funds such as Fidelity start allocating funds to start ups, one may want to re-evaluate just how bubbly the market isn't.

Another scary observations: at $18.2 billion, Uber has more than quadrupled its valuation in less than a year. Per the WSJ only Facebook . in 2011 raised capital at a higher valuation from private investors—an investment from Goldman Sachs valued the social network at $50 billion—according to VentureSource data.

One final observation: at $18.2 billion, Uber has a valuation which according to CapIQ is higher than 254 companies in the S&P500, or more than half; it also has a higher valuation than all the companies in the Russell 2000!

What else is there to say.

Here are some companies whose valuation was just surpassed by Uber:

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 06/06/2014 - 13:36 | 4830583 dontgoforit
dontgoforit's picture

Driving Ms. Daisy, Uberly.

Fri, 06/06/2014 - 13:48 | 4830607 hedgeless_horseman
hedgeless_horseman's picture

 

 

When hitch-hiking is outlawed, only outlaws will hitch-hike.

Fri, 06/06/2014 - 13:50 | 4830624 max2205
max2205's picture

The rents too damn high

 

Your car awaits you on fantasy island

 

Make perfect sense to roll market profits into this ground floor ipo

 

....................../´¯/) 

....................,/¯../ 

.................../..../ 

............./´¯/'...'/´¯¯`·¸ 

........../'/.../..../......./¨¯\ 

........('(...´...´.... ¯~/'...') 

.........\.................'...../ 

..........''...\.......... _.·´ 

............\..............( 

..............\.............\...

 

 

Fri, 06/06/2014 - 18:59 | 4831495 Boris Alatovkrap
Boris Alatovkrap's picture

Here is Boris ASCII art...

            -. .

       _____   ',' ,

     ,'     ,'   ', ',

   ,'     ,'      |  |

  \       \       |  |

    \ /^\   \    ,' ,'

          \   \ ,' ,'

    / ~-.___\.-'  ,'

  /   .______.- ~ \

/   /'          \   \

\./               \/'

Fri, 06/06/2014 - 13:51 | 4830625 nonclaim
nonclaim's picture

Yes, officer, it was her. She stole my heart.

Fri, 06/06/2014 - 14:57 | 4830854 Rusty Nayle
Rusty Nayle's picture

+1

Fri, 06/06/2014 - 17:29 | 4831355 besnook
besnook's picture

nothing better than the classics, short cutoff jean shorts and an unbuttooned flannel shirt tied at the waist with no bra. that look should be in the smithsonian.

Fri, 06/06/2014 - 18:57 | 4831491 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is intrigue by footwear. This is, how you say, horse shoe? Or whore shoe?

Fri, 06/06/2014 - 17:24 | 4831344 Exponere Mendaces
Exponere Mendaces's picture

What never shows up in the press is why "sharing" any resource, or a service built upon it, is thriving. It isn't because people want to get into someone's regular workaday car, its because most of the USA is looking for any way possible to cut costs.

That is also why Groupon is doing what it is. You can't tell me that people really LOVE sifting through deals like that, to save a few bucks while crapping all over the razor-thin margins of small businesses. They're doing it because they have already re-fied the mortgage, maxed out the credit cards, and switched brands to the cheapo version to save money.

Same thing for AirBnB, and the rest. The USA is turning into a place where people will be scrounging for leftover junk mail flyers just to wipe their asses. Its pretty damn sad.

Fri, 06/06/2014 - 13:37 | 4830587 gdiamond22
gdiamond22's picture

I need a ride bro!

Fri, 06/06/2014 - 14:05 | 4830626 hedgeless_horseman
hedgeless_horseman's picture

 

 

 

Uber connects drivers and riders through a smartphone app.

$18.2 billion?  What is the enterprise value of hitchwiki, global and probably with way more users?  Someone compare user data for us, please.

 

My bet is that the congressmen in these red states are long Uber.

Fri, 06/06/2014 - 13:39 | 4830595 NOTaREALmerican
NOTaREALmerican's picture

Like, what's the point of this article.  That a cab company can't be worth 18 billion dollars?

Fri, 06/06/2014 - 14:05 | 4830633 Georgia_Boy
Georgia_Boy's picture

It has nothing to do with fundamentals anymore ... it's all just about being today's chosen one in the grand capital casino.

But if they can make something like this work, I'd consider trying to make some gas money. Just don't touch that button on my dash as long as you're friendly, we wouldn't want you to be leaving so soon.

So when is Google buying them out?

Fri, 06/06/2014 - 17:16 | 4831324 Ratscam
Ratscam's picture

i prefer medallion media, aka TAXI.
Best stock in my portfolio

Fri, 06/06/2014 - 14:19 | 4830715 oddjob
oddjob's picture

Look at AZO, negative book value and its worth 18 billion.

 

Fri, 06/06/2014 - 19:12 | 4831513 BoingBoing
BoingBoing's picture

And how the hell is Chipotle worth more than Harley-Davidson?

Fri, 06/06/2014 - 13:39 | 4830597 maskone909
maskone909's picture

this is the biggest monetary fuck-up in history.  there is a direct corrolation between  iveyleague economist graduates and mass destruction of savings

Fri, 06/06/2014 - 13:39 | 4830598 john39
john39's picture

when it pops...  'who could have seen it coming... who?"

Fri, 06/06/2014 - 13:42 | 4830601 spekulatn
spekulatn's picture

No bubbles here.

Please move along.

Thank you bitchez.

Fri, 06/06/2014 - 13:43 | 4830608 Kaiser Sousa
Kaiser Sousa's picture

great country aint it...

no real economy...

no manufacturing/industrial base...

no real money...

no socio/economic equality...

but hey, the Dow just hit another all time high....

USA!!!!!!!!!

Fri, 06/06/2014 - 13:44 | 4830611 nonclaim
nonclaim's picture

Uber ... udder ... somebody is milking it in joy.

Fri, 06/06/2014 - 13:46 | 4830615 SloMoe
SloMoe's picture

POW, ALICE! TO THE MOON!!!

Fri, 06/06/2014 - 13:46 | 4830617 Lendo
Lendo's picture

Non-GAAP FTW!!

Fri, 06/06/2014 - 13:48 | 4830620 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

http://www.campaignforliberty.org/national-blog/war-uber-moves-virginia/

If you live in a major city, you probably love Uber. This innovative ride-sharing service is loved by consumers and loathed by taxi monopolies. City Councils all across the country are trying to regulate Uber in order to limit competition for traditional taxis.

...

What could go wrong with this IPO if this how the statists view UBER.

And not only that it gets better.

Apparently this is also about saving the children(?), according to DMV Commissioner Richard Holcomb:

“I urge the citizens of Virginia to protect their families by using only companies that appear on DMV’s website as licensed transportation services. If it’s not on the list, it’s not recommended,” Holcomb said in the DMV notice.

...

They do have a point though with unregulated free market products and services it most certainly is caveat emptor. Free markets don't suffer fools kindly but that relationship cuts both ways in a free market though since you don't stay in business too long either once you start pulling shenanigans and you don't have mommy government's skirt to hide under.

 

Fri, 06/06/2014 - 13:58 | 4830642 NOTaREALmerican
NOTaREALmerican's picture

Re:  cuts both ways in a free market

Especially when people start getting ripped off (or worse) by unregulated cabs.

There's a issue in Sacramento related to people bitching about drivers who can't speak English and wear SANDLES (and other trrrrss garb) instead of proper cabby clothing.   The city passed a law requiring cab-drivers to wear proper clothing and have a basic knowledge of the English and the Sacramento metro area (bastards).

Fri, 06/06/2014 - 14:08 | 4830676 NickVegas
NickVegas's picture

More state regulated market intervention. Cabs are expensive, and can not be summoned unless you are in a core area. They keep shutting down these websites where you can free lance transportation, too dangerous they told me.

Fri, 06/06/2014 - 14:58 | 4830862 NotApplicable
NotApplicable's picture

They'll play nice with Uber just as soon as Uber starts paying them tribute.

Fri, 06/06/2014 - 16:09 | 4831132 The Most Intere...
The Most Interesting Frog in the World's picture

hey im all for no government regulation, but not for one select company.  this is the same fucking thing amazon did.  regulate uber like the other taxi companies and uber will turn to shit like every other taxi company...

Fri, 06/06/2014 - 13:52 | 4830627 nosoeawe
nosoeawe's picture

where the fuck else are you going to put trillions of counterfeited USD compliments of the albino bowl cut munchkin and the bearded bastard bernanke

Fri, 06/06/2014 - 13:53 | 4830630 q99x2
q99x2's picture

We are all doomed.

Fri, 06/06/2014 - 13:55 | 4830635 i_call_you_my_base
i_call_you_my_base's picture

Fuller retard.

Fri, 06/06/2014 - 21:46 | 4831765 jackstraw001
jackstraw001's picture

Every time I think we've gone full retard, I'm proven wrong by fuller retard.

Fri, 06/06/2014 - 13:56 | 4830636 czarangelus
czarangelus's picture

I literally had to look this up because I had no idea what the fuck Uber is. I'm not even that old yet; early 30s.

Fri, 06/06/2014 - 13:58 | 4830645 NOTaREALmerican
NOTaREALmerican's picture

Big city thang.

Fri, 06/06/2014 - 14:21 | 4830719 ParkAveFlasher
ParkAveFlasher's picture

Most people in the big city just call a cab. 

Fri, 06/06/2014 - 14:01 | 4830658 22winmag
22winmag's picture

This is a joke... right?

Fri, 06/06/2014 - 14:24 | 4830730 buzzsaw99
buzzsaw99's picture

is this like a dot com? if so i've seen that movie before. it ends badly.

Fri, 06/06/2014 - 16:20 | 4831161 Postal
Postal's picture

Not this time: The helicopter scene changes the ending. /s

Fri, 06/06/2014 - 14:32 | 4830746 cbaba
cbaba's picture

This Uber is just a kind of different version of taxi company, I have loaded this app to my phone but prices are higher than a taxi, i doubt i will ever use it. 

And this company worth's 18 billion ?  Yes we are definitely in bubble.

Fri, 06/06/2014 - 14:35 | 4830764 xPTCx
xPTCx's picture

Here in Austin they've started ticketing and impounding cars of LYFT drivers (similar to Uber). Good luck with that.

"Austin's code limits payment to drivers to the federally established carpooling rate of 56 cents per mile. Lyft operates on a donation-based model, but the suggested reimbursement rate for its drivers is well over Austin's rideshare threshold at $1.92 per mile plus other fees. If a driver is paid over the federal rate, they risk receiving a Class C Misdemeanor and having their car impounded, according to the city"

http://www.bizjournals.com/austin/news/2014/06/04/uber-follows-lyfts-lead-launches-in-austin-despite.html

http://www.bizjournals.com/austin/news/2014/06/02/city-ofaustin-impounds-cites-lyft-drivers-after.html

Fri, 06/06/2014 - 14:39 | 4830774 Obama_4_Dictator
Obama_4_Dictator's picture

Austin is for fags....that city sucks so much dick, even Obama is amazed......Yes, I live in Texas.

Fri, 06/06/2014 - 16:15 | 4831153 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Former resident of the People's Republic of Austin. It would be a great city if you removed the:

1. hipsters

2. rich kids wasting their lives away

3. libtards

4. Sorry ass, untalented musicians too lazy to do anything else

Oh wait, pretty much most of the population.

-now DFW resident

Fri, 06/06/2014 - 16:22 | 4831173 Postal
Postal's picture

What do you call an Austin musician who breaks up with his girlfriend?

Homeless

Fri, 06/06/2014 - 14:39 | 4830778 RyeWhiskey
RyeWhiskey's picture

Next big thing - IPO of an iPhone app that let's you be a brain surgeon.

No education, no license, no experience needed.

Couple of clicks and you all set.

Bring your own equipment!

It's for "client's own good" and the "free markets!"

And by the way - write us a check to our offshore location somewhere in the Caribbean.

Fri, 06/06/2014 - 14:41 | 4830790 huggy_in_london
huggy_in_london's picture

But no bubble.  And even if there is a bubble, the "wise ones", aka dickheads, deem it part of their job to blow bubbles for "stability" reasons...  fuck these dicks.... they think they "know" yet they have never "done"

I'll look forward and laugh when the market is in the toilet.

Fri, 06/06/2014 - 14:46 | 4830807 NOTaREALmerican
NOTaREALmerican's picture

Re:  yet they have never "done"

If they blow bubbles and prosper from it they have "DONE", and big time.  What do you think the game is here?   They aren't blowing the bubbles for nothing.

Fri, 06/06/2014 - 14:52 | 4830826 Kreditanstalt
Kreditanstalt's picture

Yet another outfit which produces nothing real except the opportunity for the comparatively-wealthier minority with the correct i-gadgets and payment systems to call taxis.

Uber-idiocy.  But they'll probably get away with it.

Fri, 06/06/2014 - 23:42 | 4831930 David Wooten
David Wooten's picture

(Just about) every city has a (corrupt) taxi monopoly and if Uber destroys a few them, good.

Fri, 06/06/2014 - 15:01 | 4830881 Yellowhoard
Yellowhoard's picture

Uber is awesome.

The drivers are extremely polite because they are rated after every fare.

In SF they are cheaper than traditional cab companies and WAY cleaner.

Fri, 06/06/2014 - 15:26 | 4830972 RyeWhiskey
RyeWhiskey's picture

Sure. Awesome at kidnapping drunk ladies and dragging them to a nearest model? Precisely what this Uber driver did just yesterday:

http://www.reviewjournal.com/trending/uber-driver-arrested-kidnapping-drunk-woman

Fri, 06/06/2014 - 23:40 | 4831926 David Wooten
David Wooten's picture

Let's not rush to judgment here.  If the woman was drunk she may have passed out and the Uberer may have taken her to the motel for her own safety and stayed with her.  If she blacked out, it may be very difficult to prove otherwise.

Fri, 06/06/2014 - 15:26 | 4830974 NOTaREALmerican
NOTaREALmerican's picture

The test will come when the number of drivers increases and the first customer get assulted and the public DEMANDS the government do something about these out-of-control Uber drivers. 

Fri, 06/06/2014 - 16:09 | 4831135 NDXTrader
NDXTrader's picture

I like Uber. With that said, it's a cab company. That valuation is about 18 times too rich at least

Fri, 06/06/2014 - 19:28 | 4831550 Roger Shermanator
Roger Shermanator's picture

When all kinds of companies that you've never even heard of are valued at tens of billions of dollars, you might have a stock market bubble. 

Sat, 06/07/2014 - 00:13 | 4831964 telefunken
telefunken's picture

Is that "uber alles"?! Something tells me if "public" Cede & Co. would trade higher than all....

Do NOT follow this link or you will be banned from the site!