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Meanwhile, investors are willing to overlook some of Uber's many challenges as drivers for the service went on strike. The near-term trends in the business - both slowing growth and profitability -- are what keep some on the sidelines, while executives say investors have to take the long view. Karina Huber reports from New York.
A day before Uber's initial public offering, drivers for Uber and competitors went on strike in cities around the world including New York. They were protesting what they say is low pay and poor working conditions. The protests highlighted just a few of the numerous complaints leveled at the company since it was founded ten years ago by Travis Kalanick in San Francisco. He stepped down as CEO in 2017 after being accused of fostering a toxic work culture where sexual harassment and discrimination occurred.
MAX WOLFF, MANAGING PARTNER MULTIVARIATE "The class of people who are about to receive the largest wealth transfer in American history - this millennial generation - has displayed a consistently much higher interest in corporate culture and social impact than their predecessor generations."
TOM WHITE, SENIOR INTERNET ANALYST D.A. DAVIDSON & CO. "Uber has to, I think, treat these issues very carefully. Their brand in North America at least is still somewhat impaired."
White, who has a neutral rating on Uber says repairing that image is just one of the many challenges the company faces as it prepares to go public - in a listing that could raise nine billion dollars.
TOM WHITE, SENIOR INTERNET ANALYST D.A. DAVIDSON & CO. "Long-term we think their scale could translate into a better margin profile relative to its peers but the near-term trends in the business - both slowing growth and profitability are what keep us on the sidelines there."
Uber is facing stiff competition in its core ride-sharing business in the U.S. and abroad. Uber Eats - it's food delivery service is also under pressure from other rivals. Since its inception ten years ago, the company hasn't turned a profit losing at least one billion in the first three months of 2019. Executives say investors have to take the long view. Comparing themselves to Amazon, they said Uber plans on becoming a one-stop shop for all things transportation. Wolff is skeptical - pointing out that Amazon was profitable ten years in.
MAX WOLFF, MANAGING PARTNER MULTIVARIATE "It's great to have vision but when we get a heavy dose of vision around earnings or an IPO story from a tech company, it's usually a good time to be cautionary."
KARINA HUBER NEW YORK "We'll find out very soon whether investors are willing to overlook some of Uber's many challenges - shares begin trading here at the New York Stock Exchange on Friday. Karina Huber, CGTN, New York."