Uber's CEO: We Have No Plans for an IPO Right Now

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Nov. 25 (Bloomberg) -- Travis Kalanick, CEO and co-founder of Uber, discusses the company's competition, international expansion plans and valuation with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Billion earlier this year.

Uber is trying to get new drivers on the road by partnering with toyota and general motors to reduce car payments.

They say they will offer discounted financing for people who sign up as drivers in six of their fastest-growing markets.

For more i spoke to the ceo earlier today, starting by asking him about the terms of the deal and what financial providers he is working with.

The risk of financing them goes way down when they are affiliated with us.

They get in that car and go to work every day, grossing $100,000 a year on that vehicle.

When you reduce the rates it means $100 less per month on your car payment.

We are happy to have the giberson.

Whenever i get into the car i always talk to the driver and i know many of them work for other companies, like sidecar.

How do you keep so many people you are helping to buy cars from going to competitors.

With uber, they are doing volume on our platform.

And the risk is reduced.

At the end of the day, they are independent contractors.

Our job is to make sure that with every trip they are doing they are making a better living and a better income.

If we do that and have a better product, generally, i think that we win in getting the most supplies and being able to reach the huge demand for what we offer.

Supply is the biggest issue, this is not about the man but meeting all of the demands out there.

This is closer to the sidecar model of the home drivers, away from the flat services that you have done in the past.

How do you continue to stand out -- this is kind of a funny premise.

We certainly have competitors.

Any successful business is going to get clones, but we feel that this is probably the other way around.

These companies have been around in 2012. we have been around in this city since 2010. our job is to make sure that customers have a high-quality ride and when we bring in lots of customers and they are getting on the system, that the supplies there to make that a reality.

How is this doing with the taxi service as well -- this is the high-end service in every city we have launched in.

It continues to grow and we have never seen uber black go down and it continues to grow.

But at the lower price point a lot more people come forward.

We have seen more robust growth, more insane growth on the lower end or the higher-end.

When you say 13 or 15% month over month growth, the slow- growing product -- for most businesses this would be something to write home about.

If the driver makes $100,000 per year on average, what do you get -- it depends on the product but generally this is about 20%. you have about a 20% cut of that.

Other products may have larger margins but that is the margin that most of these trips happen on.

What cities are next on the list?

It is hard to say what city.

We do multiple cities per week.

The focus over the next few months.

There will be a lot going on in south america and latin america, with interesting activities in china.

China is not an easy market.

How is it going there.

It is going well and we have not seen any problems there.

There are 80 cities in china with more than 5 million people and making use better ways of getting around their city.

You still face regulatory issues and l.a. and washington.

How do you overcome that over time.

Do you see those moving out on their own?

When we are successful in a city.

The taxi industry goes and lobbies the city council people to try to outlaw competition because that is what they have typically done.

I think our customers and partners, the drivers, love the service that we offer so much is that they speak out and their voice is what makes sure that we can operate in the city that we are in.

We saw the cease and desist in san francisco three years later.

But you are operating.

Just because there is a cease and desist does not mean you are doing anything wrong, it means someone doesn't like you.

You recently raised a lot of money.

What makes this evaluation fair.

What makes it fair is multiple people would have been willing to pay this.

You have people crying, bubble again.

A lot of companies, private companies are raising money at multibillion-dollar valuations.

If you spoke to anyone who got in on the round, we basically closed in july and negotiated in june.

I guess the negotiation was in july.

Our growth is pretty robust and probably unlike a lot of the companies that you see out there, we have a top line, unit economics to justify this.

When will the ipo happened?

We have no plans for that right now.

But we certainly have a healthy balance sheet, to make that decision if we need to.

The economy has exploded because of the success of uber.

There are a lot of different things, not just cars, and car services but sometimes this doesn't work out.

There was a company called blackjack, and we hear this is not working.

What makes this work and not work.

This is a deep question.

A lot of things go into this.

I think the way that i think about this is, this is a cross between lifestyle and logistics.

Lifestyle is give me what i want, right now, logistics is physically delivering this to who wants it.

If this is for whatever it is, and it crosses lifestyle and logistics, you should expect us to be doing it.

What is beyond cars -- i will keep you posted.

This could be for a lot of things.

We are in the business of delivering cars for five minutes but once you are doing that, there is a lot you could deliver.

What about delivering mail?

We may have to put up a special service.

We will have to see this.

I want to give you an update on

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change