Credit: Shutterstock photoUber has become one of the most buzzed-about companies in the media, despite not being a publicly traded company yet. As the company gets set to potentially go public later this year or next, some on Wall Street think it will be worth at least double what it's worth now.
In a research report this week, Bernstein analyst Carlos Kirjner believes Uber will not go public at a valuation of less than $80 billion.
"Many investors were surprised that Uber was reportedly valued at $30 billion or $40 billion in a private round," Kirjner wrote in the note. "We would be surprised to see it valued at less than $80 billion as a public company: we believe that a tiny portion of Americans have ever used Uber, but among those who have, usage is increasing among every cohort."
Uber recently announced it raised $1.2 billion, giving it a $40 billion valuation.
Kirjner and team believe that the average Uber user takes around 5 trips a month, a number that is growing, even when taking into account the massive growth Uber is seeing in the number of riders overall.
Though Uber has severely disrupted the taxi industry, by allowing for on-demand taxis instead of trying to hail a cab, it has so many more uses.
Uber has long been thought of as a logistics company, allowing for the delivery of goods and services in a much more efficient manner than UPS or FedEx. Uber has experimented in this area, with deliveries of medicine, Christmas trees and more, a fact not lost on Kirjner, as he mentions Uber for Enterprise and Uber Fresh (the company's food delivery service):
"[T]he value proposition to users so much better that it is hard not to see the potential for value creation and dislocation. It is no wonder that incumbents in many cities are fighting to protect their markets, often oligopolies or monopolies."
Not only does Uber have implications for the taxi and logistic industries, but the auto makers as well.
Kirjner noted that "The automotive industry should watch out..." It's clear that companies like Ford (F), General Motors (GM) and others are paying attention, as ride-sharing becomes more prevalent around the world."
At the forefront of this trend is Uber, and it shows no signs of slowing down.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
