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Investors see Uber’s recent sale of its China business to rival Didi Chuxing as a step toward an IPO, but there is a better reason Uber is likely to go public sooner rather than later—slowing revenue.
It’s better for Uber to go public before its revenue growth starts to slow, especially given the firm’s massive $68B valuation and the need to make investors believe it’s a good buy, the Wall Street Journal reports.
Plus there are reasons to believe Uber’s growth will soon slow as well. The ride-sharing company is close to saturating the US market, and eMarketer predicted in May that the rate of growth in the number of Americans who use a ride-sharing service will fall from 13.3% in 2017 to 7.2% in 2018. [WSJ]
