Uber’s London Taxi Rival Will Cost You Peanuts
Carlyle must be hoping that some of Uber’s magic valuation dust rubs off on Addison Lee. The investment has been difficult for the private equity firm.
Uber is valuing itself at up to $92 billion, while one of its big London rivals is probably worth up to $650 million.
Photographer: Chris Ratcliffe/Bloomberg
Uber Technologies Inc.’s initial public offering next week will be a bittersweet moment for private equity giant Carlyle Group and its London minicab firm Addison Lee Holdings Ltd.
Uber will almost certainly join its fellow ride-hailing company Lyft Inc. in securing a nosebleed market value, despite making heavy losses. The investor buzz could benefit Carlyle as it looks to exit from its own unprofitable taxi operator. Unfortunately, fierce competition from Uber is also a big reason why Addison Lee has been such a difficult investment for Carlyle’s 5.4 billion euro ($6 billion) European buyout fund.