Uber CEO reminds employees of rocky start of Amazon, Facebook IPO; says our road is same

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Published: May 14, 2019 11:21 AM

With Uber’s capital and the market’s tendency to change sentiments, the cab-hailing giant hopes that it will show improved margins and profits in the future.

uber, uber strike, uber ipo, ipo, uber alibaba, alibaba ipoUber IPO: Uber was expected to reach a valuation of $80 billion. 

Amid Uber’s disappointing market debut, CEO Dara Khosrowshahi sent an assuring note to its employees and reminded them of Amazon and Facebook who had faced similar troubles in trading post their IPO launch as well. “Remember that the Facebook and Amazon post-IPO trading was difficult for these companies,” the chief executive said. He further added that Amazon and Facebook’s current market hold is inspirational for Uber’s rocky start. “Our roads will be the same,” said Dara Khosrowshahi in a memo to employees before meeting them at the ‘All Hands’ event. He acknowledged that the public sentiments don’t change overnight and the company must gear up for tough market times. However, with Uber’s capital and the market’s tendency to change sentiments, the cab-hailing giant hopes that it will show improved margins and profits in the future and the company’s long-term performance will be judged rather than the current performance.

Also Read: Uber IPO flops, SoftBank’s market value slides $9 billion

Uber, which had launched its IPO just a few days back was expected to reach a valuation of $80 billion, a considerable low from the earlier expectations of $120 billion which would have been a rare feat. Experts had hoped for a stellar opening for the IPO, however, it didn’t deliver to its promises. Uber IPO was important to other tech startups with it being considered a bellwether. Earlier, a Forrester analyst — Satish Meena — had told Financial Express Online that the Uber IPO will not just create liquidity in the market but also bring money for startups for investment. Harping on the same lines, Eric Schiffer, CEO at US-based Patriarch Organisation had told Financial Express online that the Uber IPO will push more IPOs from tech startups, given it does not crash.

Uber’s IPO, however, was a flop with the shares of the company trading low on the first day of its initial public offering. In fact, they slid by 10% on the second day. Uber’s IPO is one of the biggest public offerings of this year.

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