Uber to Sell China Business to Rival Didi After Losing Billions

Post by yladiz » Mon, Aug 01, 2016, 2:02 PM UTC

menzoic wrote: post #132

yladiz wrote: post #101

Earlier quoted context omitted.

It's extremely unlikely that they'll IPO for anywhere near $100 billion, or even near their current valuation (for reference, the largest IPO in history is Alibaba with $25B). Their accounting practices most likely don't utilize GAAP, which is how they get around saying "we're profitable in the US", so I wouldn't be surprised if they were actually significantly losing money. Plus with the multitude of lawsuits agains…

> the largest IPO in history is Alibaba with $25B Facebook's IPO was much larger at $104B

Post by chw9e » Mon, Aug 01, 2016, 2:55 PM UTC

Eutow wrote: post #137

erikpukinskis wrote: post #66

> “Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there. Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term.” Hm. This makes me wonder if their strategy for doing that is price fixing. The merger lets them do that legally. Are there any other serious players in…

>The deal with Didi Chuxing comes just days after China agreed to provide a legal framework for taxi-ordering apps. Both Uber and Didi have welcomed the decision, having previously operated in a legal grey area in the country. While the apps are widely popular, they have undermined business for normal taxis and have been met with protests by cab drivers. The new rules will take effect on 1 November and will, among ot…

Post by georgeecollins » Mon, Aug 01, 2016, 3:03 PM UTC

sudoscript wrote: post #3

I can't tell if this is a good deal for Uber investors or not. As I understand it, Uber will own a 20% share in the combined company. The combined company is valued at $35 billion, so Uber's share of the value will be $7 billion (actually less, since they also need to share it with Baidu which invested directly into Uber China too). $7 billion doesn't sound too bad as an exit. However, if Uber's China business is wor…

Post by curiousDog » Mon, Aug 01, 2016, 3:14 PM UTC

yladiz wrote: post #101

curiousDog wrote: post #11

Next up, gobbling up Lyft. Looks like they really want to be the monopoly at IPO time. At this rate, they'll probably IPO at more than $100 billion. Sigh, should've interviewed with them last year, haha

It's extremely unlikely that they'll IPO for anywhere near $100 billion, or even near their current valuation (for reference, the largest IPO in history is Alibaba with $25B). Their accounting practices most likely don't utilize GAAP, which is how they get around saying "we're profitable in the US", so I wouldn't be surprised if they were actually significantly losing money. Plus with the multitude of lawsuits agains…

Post by rsync » Mon, Aug 01, 2016, 3:41 PM UTC

snaky wrote: post #50

Jean Liu, the president of Didi, is the daughter of Chinese businessman and Lenovo founder Liu Chuanzhi, and the granddaughter of Liu Gushu, a senior executive banker at the Bank of China. Travis Kalanick is not.