Mobile ride hailing startup Uber is expected to hit an annual revenue run rate of $US10 billion by the end of 2015, sources told Business Insider’s Henry Blodget.
Uber keeps 20% of every transaction, which means Uber will be netting about $US2 billion on $US10 billion gross revenue.
What’s more, most of Uber’s revenue comes from 10 of its earliest cities, including San Francisco and New York. When its other 140+ cities mature, you can imagine that $US10 billion revenue figure multiplying quickly. San Francisco alone generates hundreds of millions of dollars for Uber. Uber is operating in more than 45 countries without having made a single acquisition.
Let’s say that all again:
Uber is expected to generate $US10 billion of which it keeps $US2 billion in the next year or two.
That’s not to say the company is profitable. It spends tons of money on marketing tactics to recruit new users and drivers. Still, those figures for a five-year-old startup are staggering.
To put that in perspective, Facebook is expected to generate $US10 billion for the first time this year, after 10 years of operation. Granted, Uber and Facebook are entirely different businesses (advertising versus transactional) but yah, $US10 billion is a lot.
Blodget also learned that Uber’s revenue will grow about 300% this year and it’s expected to grow another 300% next year. A snapshot of Ube’s financials obtained by Valleywag in late 2013 showed Uber generating about $US20 million per week.
Further, Blodget’s sources believe Uber will go public in a few years at a $US50-10 billion valuation. Uber’s last valuation exceeded $US18 billion.