Category: Uber

April 29, 2019 Off

Autonomous vehicles make congestion pricing even more critical

By Jill T Frey

Autonomous vehicles will soon be ubiquitous on city streets. Before this happens, we should ask ourselves: Will they whisk us quickly through cities or make traffic worse?

A car is a car, whether self-driving or people driven—taking up a great deal more space than busses, streetcars, or trains—so let’s make sure the cost is right. Traffic has already increased in many cities due to widespread ride-hailing. Once Uber further rolls out autonomous vehicle fleets, calling a car will be cheaper, more competitive—and a potential burden on our streets.

A new study by UC Santa Cruz Professor Adam Millard-Ball in the Journal of Transportation PolicyRead the rest

April 27, 2019 Off

Some reassuring data for those worried unicorns are wrecking the Bay Area

By Jill T Frey

The San Francisco Bay Area is a global powerhouse at launching startups that go on to dominate their industries. For locals, this has long been a blessing and a curse.

On the bright side, the tech startup machine produces well-paid tech jobs and dollars flowing into local economies. On the flip side, it also exacerbates housing scarcity and sky-high living costs.

These issues were top-of-mind long before the unicorn boom: After all, tech giants from Intel to Google to Facebook have been scaling up in Northern California for over four decades. Lately however, the question of how many tech giants the region can sustainably support is getting fresh attention, … Read the rest

April 27, 2019 Off

Startups Weekly: All these startups are raising big rounds

By Jill T Frey

TechCrunch’s Connie Loizos published some interesting stats on seed and Series A financings this week, courtesy of data collected by Wing Venture Capital. In short, seed is the new Series A and Series A is the new Series B. Sure, we’ve been saying that for a while, but Wing has some clean data to back up those claims.

Years ago, a Series A round was roughly $5 million and a startup at that stage wasn’t expected to be generating revenue just yet, something typically expected upon raising a Series B. Now, those rounds have swelled to $15 million, according to deal data from the top 21 VC firms. And VCs are expecting the startups to be making money off their customers.

“Again, for the old gangsters of the industry, that’s a big shift from 2010, when just 15 percent of seed-stage companies that raised Series A rounds were already making … Read the rest

April 26, 2019 Off

Equity Shot: Uber’s IPO terms and Slack’s S-1

By Jill T Frey

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Kate and Alex are back (again), bringing you the latest on the IPO front. As Friday is coming to a close, we’ll keep this post short to leave plenty of room for you to dig into the audio. Welcome to the weekend.

Up first we dug into Uber’s latest S-1 filing. This time, the company set a price range for itself (TechCrunch’s coverage here), valuing itself at $84 billion and also detailing estimates of its first-quarter results (Crunchbase News’s notes here).

We suspect Uber will ultimately price a top that range. Time will tell.

And then we turned to Slack, who’s direct listing will help set the historical tone for the unicorn era; screw your money, Slack says, we have our own. Well maybe not, but the … Read the rest

April 26, 2019 Off

PayPal makes a big marketplace play with its $500M investment in Uber

By Jill T Frey

Uber’s announcement of its IPO pricing earlier today came with a $500 million belated Easter egg. The payments giant PayPal is making a half-billion-dollar investment in the company, paying $47 per share, which gives the company a valuation of $78.8 billion (in the middle of the range of Uber’s IPO pricing of $44-$50 per share).

Neither Uber nor PayPal gave much detail about the $500 investment. Uber’s S-1 and a short statement on LinkedIn from PayPal’s CEO Dan Schulman both used the same wording, noting the deal would help the two work on “future commercial payment collaborations, including the development of Uber’s digital wallet.” So what’s actually going on here?

The deal clearly gives Uber another significant piece of financial padding going into its public listing — and it needs it, with a loss of $1 billion in the last quarter alone — as well as a closer commitment from … Read the rest

April 26, 2019 Off

A new era for enterprise IT

By Jill T Frey

Amidst the newly minted scooter unicorns, ebbs and flows of bitcoin investments and wagers on the price of Uber’s IPO, another trend has shaken up the tech industry: the explosion of enterprise software successes.

Bessemer notes that today there are 55 private companies valued at $1 billion or more compared to zero a decade ago. Proving this isn’t just private market hype, enterprise cloud companies have well-exceeded $500 billion in market cap and are on a path to hit $1 trillion in the next few years.

Whether it’s the masterfully executed IPOs of Zoom and PagerDuty, the imminent Slack IPO, or the mega funding rounds of companies like Asana, Airtable, Front, and many others, the insatiable demand for enterprise cloud deals shows that … Read the rest