FOXBusiness.com has obtained leaked documents that Uber is using to persuade investors to participate in its Uber China financing. The global ride-sharing company is close to finalizing a round of at least $1 billion that would value Uber China at more than $7 billion, according to a source with direct knowledge of the matter.
FOXBusiness.com has also learned that the company is telling potential investors that Uber China will be spun off as a separate business that could IPO before Uber.
The documents show that Uber’s “net present value,” a projection of cash flows, is $4.9 billion in Shanghai, $2.2 billion in Guangzhou and $1.8 billion in Shenzhen.
While Uber is the dominant car service app in the United States, it has a lesser market share in China, due to competition from services like Didi Kuadi.
Uber is also showcasing its “contribution margin” in various cities, a measurement of profitability that excludes variable costs. The company’s “contribution margin” is at 11.1% in Stockholm and Johannesburg and 10.1% in San Francisco. Other top cities include London, Charleston, Melbourne, Washington DC and New York. The breakdown shows that Uber pays roughly 80% of what it generates from gross bookings in driver commissions.
[drizzle]Uber is the world’s most valuable startup with a $50 billion valuation. Its long list of investors include Google Ventures, Blackrock and Goldman Sachs.
Uber declined to comment.
Below are the specific data points obtained by FOXBusiness.com and given to the company’s investors.
Document 1: City Profitability (Mar-2015)
Selected Cities Contribution Margin
Stockholm 11.1%
Johannesburg 11.1%
San Francisco 10.1%
London 9.7%
Charleston 9.5%
Melbourne 9.3%
Washington DC 9.3%
New York 9.2%
Boston 9.1%
Paris 8.7%
Chicago 7.0%
Sydney 6.4%
Atlanta 5.4%
Mexico City 4.9%
Miami 4.4%
Baltimore 4.1%
Minneapolis 4.1%
Houston 4.1%
Phoenix 3.8%
Seattle 3.5%
Note: margins adjusted for uberPOOL promotions
Document 2: Selected City NPVs
Selected City NPVs (net present value)
Shanghai
NPV: $4.9bn
Guangzhou
NPV: $2.2bn
Shenzhen
NPV: $1.8bn
Document 3: City Contribution Margins
San Francisco Today
Gross Bookings 100%
Driver Commission (78.1)%
Safe Rides Fee 5.0%
Driver Incentives (1.4%)
Returns (0.4%)
Net Revenue 25.1%
Payment Fees (2.4)%
Mobile (Net) (0.2)%
Network (0.3)%
Other COGS (1.9)%
Sales & Marketing (2.9)%
Insurance (3.5)%
Other Opex (3.8)%
Contribution Margin 10.1%
London Today
Gross Bookings 100%
Driver Commission (80.0)%
Safe Rides Fee 0.0%
Driver Incentives (1.6%)
Returns (0.8%)
Net Revenue (17.6%)
Payment Fees (1.5) %
Mobile (Net) (1.0) %
Network (0.2)%
Other COGS (0.6)%
Sales & Marketing (3.5)%
Insurance (0)%
Other Opex (1.1)%
Contribution Margin 9.7%
Shanghai Launch
Gross Bookings 100%
Driver Commission (80.0)%
Safe Rides Fee 0.0%
Driver Incentives (138.8)%
Returns (0.3%)
Net Revenue (119.2%)
Payment Fees (1.0) %
Mobile (Net) (5.6) %
Network (0.8)%
Other COGS (1.2)%
Sales & Marketing (15.3)%
Insurance (7.0)%
Other Opex (7.6)%
Contribution Margin (157.6%)
Follow Katie Roof on Twitter @Katie_Roof
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