Uber Going Public: Wishful Thinking


By Camille Mendoza

Uber has become a staple in every city dweller’s phone screen, and investors have taken notice. Hedge funds like Tiger Management are speculating that the personal driver service, which is valued at $41.2 billion, will be going public. Fortune writer Tom Huddleston adds fuel to the fire, on the heels of recent news that Uber’s CFO Brent Callinicos had stepped down.  Huddleston argues that a more Wall Street-savvy CFO could help Uber’s transition from private to public. Given recent controversies, this idea is problematic. Governments are threatening to sue or  ban the service in many cities, as they claim that unlicensed drivers should be illegal. Additionally, there have been several allegations of Uber drivers raping women in places like Delhi and Philadelphia. As Fortune writer Kevin Kelleher argues, the ongoing high-profile controversies could weigh on the company’s shares in the public market. For these reasons, going public is both unwise and unlikely. Uber should remain private until it wins these regulatory battles, or crashes while trying.Sources