As it works to close out a $1 billion round for its Chinese operations, ride-hailing company Uber is circulating pretty enticing financial projections.
According to investors documents obtained by FoxBusiness, Uber pegs the “net present value,” a projection of cash flows, at $4.9 billion in Shanghai, $2.2 billion in Guangzhou, and $1.8 billion in Shenzhen.
Despite heavy competition from local rivals, especially Didi Kuaidi, it’s clear the company views the country as a massive market opportunity, and it’s investing in it as such. The documents are showing that in Shanghai, it’s investing an incredible amount of money into “driver incentives” — presumably cash bonuses for new drivers and other payouts — that’s the bulk of the 158% the company is losing in that market.
But the company is allegedly valuing its Chinese operations at $7 billion, according to FoxBusiness’s sources. It’s also continuing to tout its plans to spin off and take public its Chinese business domestically, aspirations the company confirmed to the media earlier in August. Moreover, the company’s Chinese unit could go public before Uber’s U.S. business, which is currently valued at about $51 billion.
The leaked documents also show Uber’s 10 most profitable cities, with Stockholm and Johannesburg tied for the top spot, followed by San Francisco.
