Uber’s Future Amidst Controversy
After the Kalamazoo shooting there is trouble brewing amongst public opinion of the private company, Uber. There is the possibility that there is going to be some financial backlash among its private investors. This is not good publicity for the company. CEO Travis Kalanick is going to have to meet with a lot of investors who want to know what the deal is. Some of these investors include Fidelity, Benchmark Capital, Jeff Bezos and a whole group of other prominent names that have invested in the company.
There are also other major technology companies that have invested in the company as well and all of them want some answers. One of the reasons the company has stayed public for so long is to not have to deal with regulatory issues and oversight that would jeopardize how they run the company. There has been reported over 53 investors who want to speak the CEO. This is a large investment for many institutional and personal investors.
This could have proved to be even worse if the company had went public which is something the company sees it self doing in the upcoming future. The company is hoping that the story doesn’t stay on people’s radar for too long.
Current Valuation & Future For Uber
The company last year had over $1 billion in financing giving it an estimated valuation of $50 billion. This car service is one of the most valuable tech companies there is in the industry and globally as well. There are a couple hundred thousand drivers working for Uber around the country and perhaps even a million throughout the globe. Uber has entered the vernacular and is becoming a staple of culture that has a lot to do with how people commute around the world.
In the case of the recent shooting there really is no way to vet these types of people. The background check as it is, is already an efficient process that keeps all of these Uber drivers up to task as they drive around millions per day. Something like this was bound to happen but shouldn’t stop the forward trajectory that this company is going to have as it has already made a lasting impact on the world and transportation.
The only problem that the company may face is new regulations and a difficult legal system limiting free enterprise. There is no way for the government to get rid of this new type of business model but there is the chance they could make it less profitable if it were to become a public company.
Either way Uber has shifted into a new paradigm of doing business in the sharing economy that is rising in more ways than one. It will keep progressing no matter what is in its way and eventually have itself an IPO. In the meantime it has to keep doing the best it can to serve its customers so that they can have a safe and reliable trip.