Uber’s CEO this week revealed that the company is on track for a 2019 IPO. In an interview with CNBC at the 2018 Code Conference, CEO Dara Khosrowshahi stated that the company’s profile, profitability and margins were in a “good position” to IPO sometime next year. Last week, Uber revealed strong revenue growth of 67% as well as losses down 49% year on year, with an updated tentative valuation of $62 billion. Khosrowshahi also revealed in the interview that Uber’s focus for the foreseeable future is to create a safe riding experience for riders and drivers alike, further mentioning the company’s intentions to expand into all modes of transportation from bicycles to subways.
In digital startup news, Google has partnered with Orange Digital Ventures to invest in emerging businesses in the EMEA region. While the fund has not yet confirmed a set investment amount, the companies receiving funding will be those specifically in the areas of the internet of things, cybersecurity, cloud services, AI, fintech, and connectivity solutions. As this fund will be an extension of Google’s corporate development arm, companies of interest will be those which have the potential to prove strategic acquisitions for Google.
The world of digital marketing has this week seen the enactment of GDPR. As companies are being required to comply with new regulations, Facebook and Google have reportedly received complaints around their methods of getting users to agree to updated terms and conditions. Privacy advocates have reported that only giving users the choice between accepting the terms and conditions or deleting their account is an unfair practice.
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Featured in digital services listings this week we have a $308K digital services social media marketing business, with revenues growing at an impressive CMGR of c.11% for the trailing 12 months, full team of well-trained employees ready to transition with the business, scalable cost structure and low owner involvement.
Featured in SaaS listings this week is a $121K B2B real estate business with strong CAGR of c.155% for the 2015 to 2017 period, low customer churn rates of c.3.7% and high CLTV of c.$5,215 over the trailing 12 months, well-known brand with a foothold in the lucrative real estate market and robust API built in line with industry standards. If you are interested in either of these businesses, follow the links to request a prospectus.
In events news, Founder Thomas Smale is off to SaaStock Berlin next week on June 7, where he will be networking with entrepreneurs, thought-leaders and executives in the SaaS industry. If you will be in the area, make sure to reply to this email to set up a time to meet!
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Continue reading below for more on Uber’s prospective 2019 IPO, Google’s partnership with Orange and GDPR complaints surrounding Facebook and Google.
- Impressive growth, with revenues growing at a CMGR of c.11% of the trailing 12 months
- Full team of well-trained employees transitioning with the business
- Scalable cost structure
- Low owner involvement
Yearly net profit: $90,500
Asking price: $308,000
- Strong revenue growth with an impressive CAGR of c.155% for the period 2015 to 2017
- Highly differentiated product driving low customer churn rates of c.3.7% and high CLV of c.$5,215 over the trailing 12 months
- Well-known brand with a secure foothold in the lucrative $217 trillion real estate market
- Robust API built in line with industry standards and offering unique integrations
Yearly net profit: $35,000
Asking price: $121,000
In The News…
Uber CEO Says Company is On Track for 2019 IPO
Dara Khosrowshahi, Uber’s CEO, announced on Wednesday that the company is on track for a 2019 IPO.
At the 2018 Code Conference in Rancho Palos Verdes, California, the executive told CNBC’s Carl Quintanilla that the company is in a “good position” when it comes to the company’s profile, profitability and margins. Berkshire Hathaway’s Warren Buffet approached Uber in discussions around investing in Uber though Khosrowshahi says that investments have not yet been made by the investing veteran, sharing the hope that the time would one day be right. While not currently looking for immediate liquidity, the CEO mentioned that the company has a very strong balance sheet, though they would welcome strategic investment. Right now, however, the priority is to build a strong management team and build the company as they plan to IPO. Amig top searches for management, the CEO mentions he is in search of a CFO and is also looking to build out the “safest mobility platform” to make sure drivers and riders alike are safe.
Uber’s CEO has expressed interest in becoming “the world’s biggest A to B platform for transportation,” as they are currently in everything from freight to delivery.
Orange and Google Partner in EMEA Fund
Orange Digital Partners and Google have formed a strategic partnership to invest in startups outside of the US.
The companies have been partners since 2016, investing across Africa and the Middle East to bring mobile connectivity and internet services to the regions. Most recently, the two announced efforts to invest in non-American startups with first investments set to be announced later in 2018. Of the partnership, Orange Digital Ventures CEO Marc Rennard said in an interview, “We will then work together to qualify them, and when a common interest is there, we will join forces to invest in them.” This fund comes not from GV or CapitalG but rather as activity from Google’s capital development division, which seeks out mutually beneficial opportunities and makes investments which are strategic to Google and could present a potential acquisition. Orange has been partnering with both Google and Facebook for some years to bring improved infrastructure and connectivity to Africa.
ODV was established in 2015 as a $23 million fund for early stage investments.
Facebook and Google Receive First GDPR Complaints
On the first day of GDPR enacted, Facebook and Google were accused of manipulating customers to agree to their terms of service.
GDPR has strict rules around how companies can collect and use data, the disclosures they must provide to consumers, and the way to go about seeking consent. Facebook has been informing European users about the type of data it collects in user profiles, the guidelines for how it can use data from outside websites, and facial recognition servers. Facebook and Google force users to accept the overall terms of service to proceed to the social network. European privacy advocates filed complaints about the forced consent tactics in four countries against Facebook, Instagram, WhatsApp and Google.
Because Facebook had blocked accounts of users who did not provide consent, and the choices were to accept the terms or delete your account, privacy activists argued that there was not much of a free choice.
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