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Axios Re:Cap

Is Uber's IPO a "moral stain" on Silicon Valley?

Axios Re:Cap

Axios

Daily News, News

4.5705 Ratings

🗓️ 6 May 2019

⏱️ 11 minutes

🧾️ Download transcript

Summary

Dan and NY Times columnist Farhad Manjoo discuss this week's Uber IPO. Plus, in the "Final Two," Trump delays a Chinese IPO and what to look for in Facebook's settlement with the FTC.

Transcript

Click on a timestamp to play from that location

0:00.0

Welcome to Axis Pro Rada, where we take just 10 minutes to get you smarter on the collision of tech business and politics.

0:10.8

I'm Danper Mac.

0:11.7

On today's show, how President Trump might have just killed a big IPO and what to look for when Facebook settles with the U.S. government.

0:19.2

But first, Uber gets ready to ride.

0:21.7

This Friday, Uber is expected to go public on the New York Stock Exchange, after raising

0:26.0

around $10 billion in what would be one of the largest IPOs of all time. For the ride

0:31.1

hail companies, early employees and investors, it's going to be life-changing, minting an untold

0:36.2

number of millionaires and maybe even a billionaire or two.

0:39.6

And yeah, there will be some monetary rewards for some of Uber's longest-tenured drivers.

0:44.5

As a company followed Lyft's lead and giving out cash that drivers can either pocket or use to buy stock at the IPO price.

0:50.7

So for those of us who have watched Uber's growth over the past decade, it also is going to be a

0:55.2

referendum on two key issues. First, was Uber overvalued by private market investors? Remember,

1:01.0

this company was at the vanguard of unprofitable tech startups being valued in the tens of

1:05.7

billions of dollars. That was a very new thing before Uber. And this IPO, this Friday, that's where the rubber will meet the road.

1:13.0

Lyft so far has faltered.

1:14.9

But Uber is a much more diversified company.

1:17.4

It operates in a lot more countries, has big stakes in other ride hail companies, and also

1:22.2

has revenue generating businesses like Uber Eats for Food Delivery and Uber Freight.

1:26.8

The second key issue is, well,

1:28.4

morality. Uber's been a lightning rod for years due to an act first, ask permission later

1:33.1

philosophy that ultimately seem to reflect as much about Uber's office culture as its dealings

1:38.2

with regulators. In front of that backdrop is a growing conflict between Uber and its drivers,

...

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