The Effects of Uber’s IPO

Key Takeaways of Uber Going Public

It’s now possible for you to own shares of Uber.

Your rides could get more expensive.

Your Uber drivers may be grumpy.

A lot is still unknown.

Over the past 10 years Uber has steadily risen as a dominant force in the ride-sharing market.  With this morning’s IPO launch and the recent strike of its drivers, the company has been in the news nonstop in just the past week. The Uber brand name has become synonymous with using a transportation service, and has even become verb (i.e. “I’ll Uber there,” as opposed to “I’ll take an Uber there”).  It is no doubt an immensely popular and successful disruptor of the transportation industry.  

So now that it’s “going public,” what does that mean and how is it going to affect our everyday lives?

You Can Own Shares Of Uber

The most important aspect of a company going through with an initial public offering (IPO) is that it becomes available to the general public to buy shares of company stock. Uber’s valuation went through some major fluctuations, initially expected to be valued at $120B, but ending up at at $45 a share, putting the current valuations around $75B.

Owning significant shares of Uber may or may not be realistic for you, however it will definitely affect your ride sharing experience…

If You Use Uber Often, Rides Could Get Pricier

With the company going public, this could mean that your rides could get more expensive. As mentioned previously, the company’s price per share was less than anticipated, and consumer reports are saying the company is losing money. Coupled with an unhappy workforce demanding to be paid more, and the company may seek to make up some of its financial losses by increasing the prices.

So if you take Uber often, your wallet may soon start to feel the effects of this IPO.  

Your Uber Drivers May Not Benefit

Generally, Uber drivers are pleasant and often work to ensure you have a great experience while riding in their car. If you like to chat, they may chat with you, if you don’t they may politely take the hint and leave you alone. Despite the recent strike, millions of individuals sign up to be Uber drivers, and you may be wondering how the IPO affects their lives.

Uber Driver

It has been projected that Uber drivers may not benefit from the IPO, especially considering this morning’s numbers.  The company is looking at ways to improve their financial performance, and this could mean reducing driver incentives, further damaging the relationship.

For you, it could mean your drivers are less enthused, and are grudgingly picking you up.

It’s unclear yet what all of this will mean, but it is clear that the service so many of us rely on is in uncharted and dangerous waters. Stay tuned as we further investigate, or explore the rest of our articles at our 3PL blog section.

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Sources:

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