Here are the working links: Slides: people.stern.nyu.edu/adamodar/pdfiles/blog/UberJune2017.pdf Valuation: people.stern.nyu.edu/adamodar/pc/blog/uberJune17.xls
Vieshaalan Naidu That's because he considers them a 'global logistics company' not as a 'cab service company'. There are plenty of logistics firms around, especially on a global scale. Even if you would consider them as a cab company, many countries still rely on black cabs, or taxi. Some countries don't have high smartphone penetration or good 4G services. So again, on a *global* scale, they are not completely dominant.
jam626 Thanks for the reply. my question was more about the numbers used to arrive at that figure, and not so much about the lack of market dominance implied by it. So basically the process of arriving at 4.71%.
Take the gross billings in the most recent year (a number that Uber reports or leaks) and divide by the total market (an assumption that you make). The 4.71% is a carry over from a previous valuation. I have replaced it with the 10% that is the right number for the 2017 valuation. Sorry about that!
With the latest SoftBank deal, I think they will debut their IPO this year! And once the VCs and PE firms cash out on the IPO, the more 'realistic' public equity market will drive the value down forcing Uber to increase their ride prices! And then, 'It is economically irresponsible not to take an Uber' saying will die down.
Is the culture of rule breaking leading to the week from hell? Is this week showing us that there is such a thing as too much rule breaking? Can we expect a new CEO who can show by example what too much rule breaking means for the rest of the company?
Great analysis, professor !! Loved it so much with a lot of insights about the company. I have noticed that you have not factored their potential of the driverless car servicing in !! Do you see any viability of that business in the coming years knowing that the technology is already a reality now ? I think that they are betting everything on that technology in order to be astonishingly successful. I don't see them limiting losses or turning any profit anytime soon for one simple reason that they have pressed down the fares so low/cheap that drivers now are not so excited or willing to drive without receiving the incentives/promotions; that being said, Uber has to keep pumping $$ in order to keep the drivers on the roads !! In fact, Uber is not earning the commissions percentages that they claim they are, but they earning much less.
Here are the working links:
Slides: people.stern.nyu.edu/adamodar/pdfiles/blog/UberJune2017.pdf
Valuation: people.stern.nyu.edu/adamodar/pc/blog/uberJune17.xls
The real MVP!
A kind of 'vlog' we all deserved
Hi Prof, just curious as to how you derived a market share of 4.71% for Uber? (If anyone else knows, please feel free to share)
Vieshaalan Naidu That's because he considers them a 'global logistics company' not as a 'cab service company'. There are plenty of logistics firms around, especially on a global scale.
Even if you would consider them as a cab company, many countries still rely on black cabs, or taxi. Some countries don't have high smartphone penetration or good 4G services. So again, on a *global* scale, they are not completely dominant.
jam626 Thanks for the reply. my question was more about the numbers used to arrive at that figure, and not so much about the lack of market dominance implied by it. So basically the process of arriving at 4.71%.
Take the gross billings in the most recent year (a number that Uber reports or leaks) and divide by the total market (an assumption that you make). The 4.71% is a carry over from a previous valuation. I have replaced it with the 10% that is the right number for the 2017 valuation. Sorry about that!
Aswath Damodaran cheers Prof.
Thank you Sir...for giving a clear idea of how uber operates in current circumstances
That was a wonderful analysis! Thank you for sharing you thoughts.
Thank You for sharing these details
Nobody dislikes your videos. You are the best.
Professor Damodaran, thank you so much for these videos. They really help to create the full picture.
With the latest SoftBank deal, I think they will debut their IPO this year! And once the VCs and PE firms cash out on the IPO, the more 'realistic' public equity market will drive the value down forcing Uber to increase their ride prices! And then, 'It is economically irresponsible not to take an Uber' saying will die down.
Wow Sir! I was waiting for this video! The nail in the coffin or heading for a total restructuring?
Brilliant stuff. I hope there are more videos like this in the future.
Is the culture of rule breaking leading to the week from hell? Is this week showing us that there is such a thing as too much rule breaking? Can we expect a new CEO who can show by example what too much rule breaking means for the rest of the company?
Great analysis, professor !! Loved it so much with a lot of insights about the company.
I have noticed that you have not factored their potential of the driverless car servicing in !! Do you see any viability of that business in the coming years knowing that the technology is already a reality now ? I think that they are betting everything on that technology in order to be astonishingly successful.
I don't see them limiting losses or turning any profit anytime soon for one simple reason that they have pressed down the fares so low/cheap that drivers now are not so excited or willing to drive without receiving the incentives/promotions; that being said, Uber has to keep pumping $$ in order to keep the drivers on the roads !! In fact, Uber is not earning the commissions percentages that they claim they are, but they earning much less.
cool channel! subscribed
Uber should be kicked out of India...Ola is Swadeshi...be Swadeshi....buy Swadeshi....uber is Videshi
Lead by woman, risk of failure will become 10 times higher...