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.
- Uber cannot support its operational business without massive VC subsidies (without drastically raising prices and losing their primary competitive advantage)
- It's too easy for small, local competitors to enter the market
- Uber has been trounced in two of the largest non-US markets
- Waymo legal mess
- The sheer volume/scale of scandal engulfing the company may be impossible to recover from
- Current valuation makes an IPO under less than perfect conditions very challenging.
If this was a well organized, planned round of funding, Benchmark wouldn't have gone behind the backs of the other board members & major shareholders to try and strike some shady deal.
- Uber cannot support its operational business without massive VC subsidies (without drastically raising prices and losing their primary competitive advantage)
- It's too easy for small, local competitors to enter the market
- Uber has been trounced in two of the largest non-US markets
- Waymo legal mess
- The sheer volume/scale of scandal engulfing the company may be impossible to recover from
- Current valuation makes an IPO under less than perfect conditions very challenging.
If this was a well organized, planned round of funding, Benchmark wouldn't have gone behind the backs of the other board members & major shareholders to try and strike some shady deal.