Close to two years after Travis Kalanick resigned from the company’s board as its chief executive officer following pressure from investors, Uber’s co-founder is set to reap billions of dollars from its IPO on the New York Stock Exchange.
Kalanick owns 8.6 per cent (117.5 million shares) of Uber, as per the IPO filing by Uber to the US Securities and Exchange Commission and seen by Financial Express Online.
This translates into a value that could be up to $8.6 billion post IPO as the company is looking to reach $100 billion valuation, CNBC reported.
While Kalanick is still on Uber’s board, he doesn’t have any functional role in the company. Around March 2018 Kalanick launched his investment fund called 10100 Fund to invest in “real estate, e-commerce, and emerging innovation in China and India” focusing on “large-scale job creation”, Kalanick had announced on Twitter in March last year.
Kalanick’s exit was marred with multiple controversies involving Uber’s culture, how it treats drivers, legal tussle with Alphabet with respect to its self-drive car automation, sexual harassment and assaults by drivers and in the company etc.
Uber has raised $24.2 billion across 22 rounds of funding since its launch in March 2009 and has been the most well-funded startups globally with the likes of SoftBank, Toyota Motor, General Atlantic, Tencent on board as investors.
Importantly, Uber’s estimated $10 billion IPO will be the eighth largest in the history of the US IPOs, as per news and data platform Axios.
Among Uber’s largest shareholders include SoftBank Vision Fund with 16.3 per cent of Uber’s pre-IPO shares followed by Benchmark Capital Partners (11 per cent), Expa — startup studio launched by Uber Co-founder Garrett Camp (6 per cent), Saudi Arabia s Public Investment Fund (5.3 percent) and Alphabet (5.2 percent), according to the filings.
Uber in its filing has also stated that it might not profitable at all ahead even as it might not be able to compete successfully against competitors.
The company claimed of its competitors in countries like India to have an advantage over Uber in terms of greater brand recognition, longer operating period, larger marketing budgets, localized knowledge, and more supportive regulatory regimes.
In India, for example, our Uber Eats offering competes with Swiggy and Zomato, each of which has substantial market-specific knowledge and established relationships with local restaurants, affording them significant product advantages, Uber said.