Uber has the world’s attention today. This Friday (May 10), the much-awaited Uber’s IPO had your debut on the New York Stock Exchange with the stock price in $45 and achieving a valuation of $ 82 billion.
The year’s biggest IPO was expected with even higher numbers, according to Washington Post, but after some difficult months, filled with complaints of employees and drivers, the company faced a challenging first step going public.
Despite all of it, Uber sustains itself as a global giant, not only for the ride-hailing service but also because of the complementary brands like UberEats. According to Forbes, in 2018 the food delivery alone was responsible for a profit of $ 1.5 billion.
Uber’s next steps
The ride-hailing service is becoming a more competitive sector every day. Besides of Lyft, traditional main Uber’s competitor, the Chinese company Didi Chuxing is another threat to the company, especially in the Asian market.
But if you think that it means bad news for Uber’s future, you’re wrong. The company has discovered a land of opportunities in Latin America.
São Paulo in Brazil is already the city where the service is most widely used among the 65 countries with active operation, according to Folha de S. Paulo. The city has more than 150 thousands of drivers working daily. Well known by the intense traffic, São Paulo users quickly present themselves as early adopters of the new transportation solution.
Latin America for us, as a company, is one of the most important regions along with the United States, and at this time, the number of trips is already greater than in US
And São Paulo’s reality isn’t different from other big cities in Latin America, like Mexico City and Santiago in Chile: Many people, a lot of traffic and a transportation ecosystem that is still very traditional.
Far away of the same level of competition that Uber’s found in other regions, there are two main reasons that make the future look bright for the company in Latin America, according to Tech Crunch:
- The region is still very dependent on traditional transportation and the largest cities can’t stand more cars. In the same way, the population is tired of crowded public options.
- Latin America is becoming more connected every day, the region is the second-fastest-growing mobile market and the Latin-Americans are used to being early adopters for foreign digital solutions, what can make Uber’s life way easier.
The company is present in 16 Latin American countries and has already made an investment of 250 million dollars last year in the first development center in Latin America located in Brazil, according to Valor. And this was just the first step to build a solid and profitable strategy of growth in the region.
Latin America has a big need. Uber has the solution. And this is a win-win game.