Flexport

Uber
tqiifqhdqj

Go to company page Uber

tqiifqhdqj
Nov 17, 2019 101 Comments

What do people think of these guys? Got an offer from them but they are giving deadline for the offer like as if I was fresh out of school. Also they are claiming they will be valued at 60b in 2 years since softbank already values them at 3b. They have a plane as well to do freight. I think their business has 0 competitors and over 5t market. Their equity offer is super low but they are claiming it will be 10x in 2 years... confused

Flexport
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 TOP 101 Comments
  • Google
    Devil

    Go to company page Google

    Devil
    Yawning another Wework in play.
    Nov 17, 2019 20
  • Google
    uzaname

    Go to company page Google

    uzaname
    Let me paste my previous comment about flexport with with some points why the valuation and market size estimates do not make sense:

    There are ~300m seaborne container trips a year at ~$2500 average price in an industry that is not covering its WACC. You have huge capex, and comoditized product with margins on the each step of value chain being razor thin at best. As an intermediary your max reach is probably 20% of the price of max 50% of the market (rest is sourced through liners directly). Your profitability at best would be 10% as you complete with 20+ others. With EBIT multiplier at around 8, it gives your market a total valuation of 64b and very slow expected growth (due to economic slowdown and decreasing GDP/trade multiplier). Flexport valuation is at 5% of that. You still have a long way to reach this market share. And you don't have relationships with customers that liners, FFs and 4PLs have.

    On top of that, the competition is fierce and everyone is investing in technology.
    Nov 17, 2019 17
    • WePay
      bdPJ56

      Go to company page WePay

      bdPJ56
      Lots of interesting points here.
      I’m wondering if any if the comments above no longer apply or need to be revised now ?

      With respect to the global market demands and delays in shipping, Flexport seems to be offering solutions for optimizing shipments.
      I’m not sure about the customer base though.

      Deciding on an offer with them.
      Jun 20, 2021
    • Uber
      120B

      Go to company page Uber

      120B
      Good insights. In the same situation, having a pending offer with them
      Aug 17, 2021
  • Twitch
    yikesman

    Go to company page Twitch

    yikesman
    "SoftBank already values us at" is usually a pretty strong indicator you should take the number that follows and divide it by 10.
    Nov 17, 2019 7
  • A lot of nonsense in this thread. Even by those that work at “Google”.

    Let me know if you want details and I can explain further!
    Nov 18, 2019 8
  • I think Flexport is actually in a great position for real growth backed by actual business opportunities. That said, any offer based on hopes and dreams is fucking you a bit.
    Nov 17, 2019 1