We discuss Uber’s massive debt which we estimate around 4 to 4.5 Billion in aggregate, with a total capital raise of 11 Billion. The total debt number is astounding to say the least, but it is the rate of change of the debt number that is mindboggling. I don`t believe Uber has the Financials to go public, and investors risk losing everything at this rate of cash burn over the next three years. Uber may be the biggest high profile startup to file for bankruptcy before they make it to the IPO exit for the payoff for investors.
Uber has a spending problem, reminds me of Napster, quite a disruptor but not a profitable business model, flawed wasted energy, that becomes totally irrelevant and obsolete in five years anyway. Uber is essentially a glorified Ponzi scheme if you really get right down to the crux of the finances of this company. There are going to be sizable losses for all the investors valuing this company at a 62.5 Billion Valuation. That number will mean diddly squat in bankruptcy court!
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