Uber Delays IPO, Faces More Fines

June 9, 2016

By HV

Uber wants to delay its IPO for as long as possible as it’s putting the benefit of its employees as the top priority.

UBER

Valued at $70 billion, Uber is one of the biggest, if not the biggest, unicorns around. And the question comes quite naturally: When will it have an IPO?

There are a few risks with an IPO that Uber wants to avoid, thus it delays it for as long as possible. An IPO entails the company will be a listed company, which will lead to a bureaucratization. This is the key point CEO Travis Kalanick wants to avoid.

“…We have thousands of employees that own stock [who gave] their blood, sweat, and tears to make Uber a great company,” he said. “Our employees work hard and ultimately that stock that everybody worked for should go to them.”

He then cited Facebook as an IPO done right, when the company had created enough liquidity for employees. One to 10 years is how long Kalanick estimated it would take Uber to get there.

But Uber is not Uber without some legal problems. A French court is close to levy millions of euros in damages and fines for the unfair competition stemmed from its lowest-cost service which employs non professional drivers. The service has been suspended in France.

Two of its European executives are also accused of abetting in illegal taxi activities and violating privacy law. If indicted, they could lose their jobs and face jail time.

Being in the forefront of a disruption in the automobile industry, Uber sure knows how to make headlines both positively and negatively. While people are speculating ride-sharing services like Uber could potentially end automakers, Kalanick considers the relationship to be more synergistic and less antagonistic.

“Cars are not going away any time soon, and companies like Uber are not going to be making them,” he said. “It’s not for us to buy cars, it’s for us to work with the folks who make cars.”

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