Uber Backers Discuss Stock Sale to SoftBank, Others
Benchmark is trying to cut their losses and limit their exposure to a complete Uber meltdown. If possible, they would probably offload the bulk of their shares to SoftBank at a loss just to wash their hands of the situation.<p>- Uber cannot support its operational business without massive VC subsidies (without drastically raising prices and losing their primary competitive advantage)<p>- It&#x27;s too easy for small, local competitors to enter the market<p>- Uber has been trounced in two of the largest non-US markets<p>- Waymo legal mess<p>- The sheer volume&#x2F;scale of scandal engulfing the company may be impossible to recover from<p>- Current valuation makes an IPO under less than perfect conditions very challenging.<p>If this was a well organized, planned round of funding, Benchmark wouldn&#x27;t have gone behind the backs of the other board members &amp; major shareholders to try and strike some shady deal.