Professor of Marketing, Chennai Business School
Online published on 15 March, 2019.
The new disruptive business models evolving in the 21st century are posing great challenges for valuation professionals. Big names like Uber, Xiaomi, Flipkart, Snapdeal, Ola, Amazon etc. have suffered huge variations and flips over the past few years. The startup sector is bracing for impact as some half-a-dozen midsized companies issued layoff notices to hundreds of employees in a bid to reduce costs and conserve cash in what portends to be a tough time for an industry struggling to deal with the effects of fast-paced growth. This paper largely examines the valuation juggernaut of Uber and the views of two group of investors who sees the valuation upsides and those who support the valuation mark downs. Only time can tell who is right.