Office Hours: Uber’s Super App Prospects, Private Wealth Managers, and When to Raise Capital

Valuation

Scott Galloway examines Uber's market valuation, highlighting its transformation into a transportation operating system with a vast user base. He notes that Uber's market cap stands at $67 billion, translating to approximately $500 per active user, which he considers a reasonable value given the company's potential to monetize its user base 1. Despite its lack of profitability, Scott believes Uber's user base could make it an attractive acquisition target, especially if its value is assessed based on user engagement rather than traditional financial metrics 1.

I don't think you value this company on cash flows or earnings. I think you value it based on its user base.

--- Scott Galloway

He acknowledges his bias against Uber due to its business practices but recognizes the company's appeal to its drivers and users 1.

   

Super App Potential

Scott discusses Uber's potential to evolve into a super app, a concept popular in markets like China and India. He explains that super apps integrate various services, commanding significant user attention and potentially achieving high valuations similar to tech giants like Google or Apple 2. Scott suggests that Uber, with its extensive user base and service offerings, could be a key component in a future super app, possibly through partnerships with payment companies 2.

It's not a stretch to think that the company that develops super app status in the United States would trade at a Google or Apple-like multiple.

--- Scott Galloway

He also notes Uber's current market position, trading below its IPO price, and its shift towards food delivery, which now surpasses its ride-hailing revenue 3.