Uber IPO: Cryptocurrency will be a "huge beneficiary"

Uber Technologies Inc. expects a valuation of approximately USD 100 billion when listing on the New York Stock Exchange. Large IPOs such as Uber and others could bring dramatic benefits to the cryptography industry. At the same time, commercial solutions allowing Uber users to pay with Bitcoin are now in the foreground.

Uber IPO: Bigger than Bitcoin Market Capitalization

On April 11, 2019, Uber asked the US Securities and Exchange Commission (SEC) to offer its common shares. In its recently released prospectus, Uber does not mention the magnitude of the IPO, which could be one of the largest ever made.

However, according to The Financial Times,

The company aims to raise $ 10 billion from its IPO and recently announced to some of its investors that it could reach $ 90 billion to $ 100 billion, according to sources close to the record. The company was last valued at US $ 76 billion at a private fundraiser in August.

Thus, the estimated estimate would exceed the current market capitalization of Bitcoin by approximately $ 89 billion.

The transportation company bases its predictions on state-of-the-art technology, expertise and a gigantic network of millions of drivers, users, shippers and other participants from around the world.

In addition, Uber details in its prospectus the following financial data:

  • Revenues from our ridesharing products increased from $ 3.5 billion in 2016 to $ 9.2 billion in 2018.
  • Gross orders from our carpooling products increased from $ 18.8 billion in 2016 to $ 41.5 billion in 2018.
  • Consumers traveled about 26 billion kilometers on our platform in 2018.

Uber has become ubiquitous. Its global carpool footprint spans 63 countries and encompasses a population of more than 4 billion people, as shown in the graph below:

Barry Silbert, CEO of Digital Currency Group added that billions of dollars in shares of private companies will be released from IPOs this year.

"The class of cryptographic assets is going to be a huge beneficiary," he says

You can already use Bitcoin

Uber's direct acceptance of payments in Bitcoin and other cryptocurrencies, however, may be very remote.

In the meantime, however, some Uber drivers around the world unofficially accept the BTC instead of the currency of their country.

Some users in Argentina, for example, have expressed interest in paying Uber with bitcoins, while some drivers would not care to receive bits instead of the peso down.

For example, an Uber driver, under the name of Reddit user Bjandrus, wrote that he already accepted bitcoins outside books for walks. However, he complains, the process is problematic because the Uber application does not support BTC payments.

It remains to be seen which carpool company will officially start accepting Bitcoin first.

However, paying Uber in bitcoin indirectly is already possible. For example, the Bitrefill gift card option and others, such as the Coinbase e-Gift Card available in some EU countries and Australia.

There are also third party services as well as cryptocurrency debit cards that allow you to pay for anything, including Uber, Lyft, etc., using bitcoin.


How do you think that IPOs such as the one expected from Uber could benefit the cryptography industry? Tell us what you think in the comments below.

Images via Uber Technologies Inc., Shutterstock

Source link