UBER

FY15 – FY17 IPO preparation timeline

Corporate governance process

24-months before IPO

21-months before IPO Compliance with

laws and regulations

18-months before IPO Preparation of

financial history

15-months before IPO Does IPO still makes

most sense for future of business?


Make changes as necessary to Board of Directors & executive management

9-months before IPO

Mitigate risk and address the issues

IPO

Corporate governance process


Establish internal team to manage the IPO process, enhance if necessary

Develop a robust business plan with objectives of going public, as well as a plan B

Appoint external advisors including financial, accounting and legal advisory team

Prepare historical financial information & establish financial reporting procedures

Adopt leading-practice corporate governance and reporting processes with transparent shareholder and corporate structure

Get your ducks in a row:

Makes changes as necessary to Board of Directors & executive management


Current Board Members:Robert Hayes – First Round CapitalBill Gurley CFA – Benchmark CapitalDavid Bonderman JD – TPG CapitalDavid Drummond JD – Google

Current board is too specialized

Recruit additional board members in areas where current board is lacking

Establish risk advisory committee with expertise in US and International laws

Evaluate and make changes as necessary to executive management

Determine risk appetite and compose risk appetite statement

Mean business:

FY14 ― Recent set-backs

Mitigate risk & address the issues


Address the negative attention received in the media regarding legal issues and the use of dynamic pricing

Have a low risk appetite for dangerous drivers― better screening & background check

Gain public’s trust in drivers by showing good will

Eliminate deal breakers and resolve any potential litigation or due diligence issues

History of taxi & car service laws that heavily regulate the industry, and protect the rights of taxi owners

Collaborative economy ― Partner with government, insurance company and contractors

Install panic button in cars to provide safety to passengers

Be a step ahead - Partner with Google for driverless UBER car

Clean up your act:

John Gorgoroso

What are we trying to say here?

Compliance with laws & regulations


Review management information systems & operational and compliance controls

Comply with all financial reporting requirements of IPO, and ensure transparent financial disclosures

Understand risks and regulations of IPO transaction, including publicity and disclosure

Establish a high livery regulation standard that can be modified slightly to different markets as needed. Continuously re-evaluate depending on industry landscape

Establish localized livery regulation legal advisory teams for every state, region or city that modifies the company-wide regulation standard based off specific law in the area

Address key legal areas:

Material contractsLitigationIntellectual property Regulatory issues (licenses/consents)Third-party consents (banks, shareholders)

By the book:

One month analysis

12 - months before IPO

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One month analysis


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Preparation of finances


End of 2013 – 125M in revenues

End of 2015 – Estimated revenues 2 – 10BRapid financing roundsSecurities

Growth focused

Primed for IPO within next 3 Years

Where’s the Profit?

Show me the money:

Confirm that IPO makes most sense for future of business

Raise capitalFund R&D, capital expenditure, pay off existing debt

Generate publicityIncrease in market share

Attract Seasoned ExecutivesExit strategy for Venture Capitalists/Other Investors

9-months before IPO

Save moneyFund R&D, capital expenditure, pay off existing debt

Generate publicityIncrease in market share

Attract Seasoned ExecutivesExit strategy for Venture Capitalists/Other Investors

Go for it: Run for it:

UBER

Positive Outlook – Collaborative Economy• USAA, Uber and Colorado Embrace the Collaborative

Economy– Innovate and collaborate to resolve the issues of risk and

protection that hinder growth, acceptance and adoption of ridesharing.

• Colorado Becomes First State to Authorize Ridesharing– Obtain permits from the Colorado Public Utilities Commission

and carry at least $1 million in liability insurance– companies or their drivers will also have to carry primary

insurance coverage during the gap period between when the app is turned on and a rider enters the vehicle.

• USAA Offers Innovative Ridesharing Coverage– Pilot program in February 2015 – Protect Uber drivers from the moment their ridesharing mobile

apps are turned on until they are matched with a passenger– Metlife, Erie Insurance are also offering

Pros of Uber• Safety – knowledge of who and

record of travel• Uber is as a cross between lifestyle,

which is “gives me what I want, give it to me right now and the logistics to get it to you”

• Link smartphones users to nearby cars

• Cashless payment system (no negotiation)

• Surge pricing (free market economics)

• Transparency (time, costs, driver info and rating)Uber can make cities productive and less congested

Study conducted in Berkeley University

Uber Setbacks• Insurance Coverage• Subprime loans

– Ubers two financial partners, GM and Santander Consumer USA were subpoened by the US Department of Justice

• Surge Pricing• Labor Lawsuit

– Cheating drivers out of fair wages– Drivers pay out of pocket expense like

gas & maintenance• Taxi Wars

– Does not have same licensing and safety regulations as traditional taxi company

Recent Setbacks

Risks and Challenges• Uber will need to address the negative attention

it has received in the media regarding legal issues and the use of dynamic pricing

• Better drivers screening and background check• Facing Uber is a potential ubiquitous history of

taxi and car service laws that heavily regulate the industry, and protect the rights of taxi owners

• Drivers can acquire new customers and implore them to call directly instead of using the app

Risks and Challenges• Drivers can work for multiple companies

therefore it might be difficult to know when they use the app and when they don’t

• Be a step ahead and make sure Uber doesn’t miss any opportunity

• Uber relies heavily on social media for its promotions, so any controversial negative experience comments could affect the popularity

Education

UBER