Push for Uber offer before ipo?

eBay hclD84
Mar 25 29 Comments

I have my final round for a role at Uber in early April. Let's assume I manage to secure an offer, would I be better off trying to push to secure prior to, or post ipo?

I know RSUs are granted as common stock nowadays with a fixed valuation of $33/share.

I guess the point here is do we believe the shares will materially appreciate / depreciate in value immediately post ipo? Short term performance in the weeks post ipo are going to be the key determinant of if the quantity of shares I'm issued is above or below a valuation based on $33.

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TOP 29 Comments
  • Google worshipped
    $33/share? No I think $42/share.
    Mar 25 0
  • Apple Lanagens
    Uber gives you number of rsu’s in the offer letter not dollar amount. So you really can’t game the amount by timing stuff..
    Mar 25 3
    • New / R&D 1So8Wa
      op is betting that rsu count will change post ipo
      Mar 25
    • Apple Lanagens
      It will reduce most likely..
      Mar 25
    • New / R&D 1So8Wa
      lyft might be a good indicator
      Mar 25
  • Uber ihnfhijj
    Where can I get shares for 33
    Mar 26 4
    • In a couple weeks , just after the IPO crashes
      Mar 27
    • Oath
      nerdsRule!

      Oath

      BIO
      hit me up if you’re hiring. I am strong in algorithms and decent at development skills. Will try my best to get you your referral bonus, hate Verizon!
      nerdsRule!more
      savage 😂, but jokes on us cause it’ll likely go up long term
      Mar 27
    • Don't think so, it is likely to go up shirt term with the hype. Once people realize there is no way they ever make money, then it will crash
      Mar 27
    • Oath
      nerdsRule!

      Oath

      BIO
      hit me up if you’re hiring. I am strong in algorithms and decent at development skills. Will try my best to get you your referral bonus, hate Verizon!
      nerdsRule!more
      well we’ll see , I recently declined an Uber offer so I’ll be watching it like a hawk 😂
      Mar 27
  • eBay hclD84
    OP
    It's a relatively senior role, and the recruiter has stated my package will be stock heavy as they cannot match my current base.

    I assume the RSU total will be based on a monetary figure in USD, which will then be backed out into a number of shares based on the valuation. From my understanding the $42 is the preferred stock price not common stock price. But I could be mistaken.
    Mar 25 2
    • Uber GxRT17
      You are mistaken on all your share price numbers
      Mar 25
    • New smh2313
      I just got an offer and you are exactly right. Join before IPO for maximum amount of rsu
      Mar 25
  • You can also sign before the IPO and start on a pre IPO valuation. If it doesn't go well, you can quit after Two months.
    But I would honestly not take the risk. Uber is a dumpster fire and you can see from every other threads that besides Uber employees nobody believe it's sustainable at that price point
    Mar 25 0
  • Don't take the risk. Very high risk that it will go down wildly, and at this point you will not got your stocks until one year after you start.

    At this point it would be a better strategy to delay the offer until one two months after the IPO to get a view on what's going on
    Mar 25 0
  • ConEdison
    dweeb

    ConEdison

    PRE
    Startuply
    dweebmore
    C’mon, all the way down the slide. Woohoo!
    Mar 25 0
  • Capital One EXwk33
    In general stocks go up on the day of the IPO since ibanks intentionally undervalue the stock...
    Mar 25 0
  • New vpUj03
    Funny thing about markets is people factor in other people opinion for their valuation and their money. What makes you think that they’ll give so much stock that it makes a difference
    Mar 25 0
  • eBay hclD84
    OP
    If offered a position, I'd plan on holding the stocks for 5+ years. The question here is how to maximise the total number of shares granted, by gaming the valuation with repsect to timing the negotiation / offer date.

    If the share price is expected to drop below the current fixed valuation price in the 4 weeks post ipo, then it makes sense to wait. If it grows it makes sense to sign prior to ipo.
    Mar 25 4
    • New / R&D 1So8Wa
      Can you extend your offer up to 4 weeks though?
      Mar 25
    • eBay hclD84
      OP
      Hard to say, it would be a case of trying to time the process around the ipo date, or using supported arguments on expected impact on share movements as negotiation points. The comment below on monitoring lyft's ipo is a great one.
      Mar 26
    • New / R&D 1So8Wa
      When is Uber IPO anyway? My guess is uber will try giving out better terms with pre ipo deadline and less favorable one after(if accepted after certain date). It’s reasonable to assume they’d try using higher valuation even though nobody will agree on valuation at this point.
      Mar 26
    • eBay hclD84
      OP
      It's scheduled for H1 but analysts predict April. Pre ipo valuation is one factor, but so is interest from institutions and buyers once it goes live on the NYSE. Its all a big gamble.
      Mar 26
  • eBay hclD84
    OP
    I disagree on the profitability piece - uber eats is hugely profitable in certain cities and now accounts for 1/6 of the company value in 3 short years. With repsect to the ride sharing side, the big issue here is the cost of the drivers, which will become much cheaper once an autonomous fleet kicks in. Not to mention a whole lot easier from a legeslative standpoint (with repsect to the grey area of drivers classed as employees and 0 contract hours). If the institutional money doesn't dry up before then...
    Mar 28 2
    • Uber ihnfhijj
      Don't forget freight
      Mar 28
    • New / R&D 1So8Wa
      Who are the big players in freight?
      How is bike business doing?
      Will fully functional & legal autonomous vehicles be ready in 10 yrs?
      Mar 28
  • Google TCNO60
    If you plan to hold long-term the why do you care about short term performance
    Mar 25 1
    • eBay hclD84
      OP
      It's quite simple-- the offer is provided as a number of shares, but it's negotiated and valued in USD. A RSU value of 500K is worth x or y amount of shares depending on the share price you divide it by. If there is material swing upwards of the share price immediately post ipo, then I'd get less shares.
      Mar 26
  • Pinterest poopoopl8
    What’s the $33 translate to in terms of their valuation?
    Mar 25 0