The ride-sharing company Uber might be in a bad situation because it has decided to go public at the wrong time. Uber recently went public and raised more than $8 billion of funding from general investors. However, the IPO did not go as planned by the company’s executives and many financial analysts. Uber on Thursday entered into the stock market, and they were expecting $45 of a price for their shares. During the whole trading, day prices were in the range of between $44 to $50 which was going according to the company’s expectations. However, the main problems came when the company managed to get a valuation of only $75.5 billion.
Uber is that company which is famous for pioneering the concept of ride-sharing business, and it’s one of the largest unicorn startups in Silicon Valley. Still, a valuation which Uber has gotten is higher than the value of automobile companies like Ford, Avis combined. Uber is ten years old startup which has got numerous amounts of funding from big venture capitalists. Before this IPO happened, many financial advisors even said that Uber is going to get a valuation of more than $120 billion in the stock market. There have been many incidents where experts were blindly appraising company and its unique business strategy.
However, it seems like the general investors haven’t given that much importance to the company and they have moderately purchased its shares. Uber’s drivers are also going on the protest because of low wage payments and working environment issues they are facing. Ride Sharing company was supposed to get more valuation and if failed to get that because of various reasons. A few days ago company’s executives said Uber might not be able to profit ever which shocked everyone. Even after so many years, the company hasn’t been able to book a single amount of profit for last ten years, and if same goes on then, it will inevitably affect its shares prices in future.