Vanguard, T Rowe Price slash valuations for Uber holdings

Paterniano Del Favero
Agosto 24, 2017

A torrid year for Uber is not getting any better, with a handful of mutual funds slashing their valuation of the startup, some by as much as 15 per cent.

Four funds have marked down their estimates: T Rowe Price, Vanguard, Principal and Hartford, the former by 12 per cent and the latter three by 15 per cent.

Uber has suffered a series of setbacks in recent months, including a federal probe into its use of technology to evade regulators in certain cities and a trade secrets lawsuit filed by Alphabet's self-driving unit, Waymo.

In addition, chief executive Travis Kalanick resigned, pressured by accounts of a culture of sexism and bullying at Uber.

Vanguard spokeswoman Arianna Stefanoni Sherlock declined to comment on the reasons for the reduced valuation.

But other funds have remained confident in the Marmite-like company. But the valuation markdowns could have an impact - Uber is in the process of putting together a fund raising where investors can buy new shares at last year's price, as well as old shares from existing investors at a lower price. It has upended the tightly regulated taxi industry in many countries and changed the transportation landscape.

The new estimates for Uber shares were first reported by the Wall Street Journal.

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