Uber growth slows ahead of IPO – The Wall Street Journal

DUBLIN – Uber's most recent private valuation was $76 billion and its planned IPO price values it at $120 billion. That would make the company a sizeable player on the stock market. Yet, as its IPO nears, its sales growth is slowing. We've discussed before how Uber's growth has been fuelled by its willingness to subsidise its rides – Uber loses money on all the rides it gives people and, in that way, manages to grow the number of rides it gives. It's a bit like the old skit from South Park: Step 1: Offer rides for $10. Step 2: Pay $12 to provide rides. Step 3: ??? Step 4: Profit! The plan has worked because these days, in the tech industry, profit doesn't really matter much. What matters is building a network – getting users to opt into your network and keeping that user number growing fast. But Uber's sales growth is slowing even as the magnitude of its losses shrinks. The company is investing heavily in new businesses and has said it will be profitable in a few years. Personally, I'm still not sure I buy the story. Hopefully, a powerhouse Uber will prove me wrong.  – Felicity Duncan

Uber Sales Growth Slows Further as IPO Nears

By Greg Bensinger

(The Wall Street Journal) As it steers toward a planned initial public offering later this year, Uber Technologies Inc. is hitting a bumpy patch on sales.

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