Goldman Sachs, an early investor, sees Uber as a 'monster business'
David Solomon, the investment bank's chief, indicates the ride-hailing company's potential hasn't fully been unlocked.
Uber goes public.
Goldman Sachs, an early investor in Uber, believes the ride-hailing service has the potential to be a "monster business," even as the company's share price struggles in the wake of its initial public offering last month.
David Solomon, chief executive of the storied investment bank, said on Monday that Uber CEO Dara Khosrowshahi had stepped into "a complicated situation" when he took the helm of the company, which was plagued by scandal. Solomon, who was speaking at the Code conference in Scottsdale, Arizona, expressed confidence those issues would be sorted out over time.
"Can they execute on all these things? If so, it's gonna be a monster business," Solomon, who disclosed he was an angel investor in Uber said. "If not, it's gonna be a big business."
The comments come amid a rocky patch for the ride-hailing pioneer. Two high-ranking executives are leaving the company, Uber said last week. The shakeup followed a disappointing start on the stock market for the ride-hailing company, which posted a $1 billion loss in its first earnings as a public company. Uber shares traded lower $42.45, below its $45 IPO price.
More broadly, Solomon urged patience with tech companies, which have been the subject of scrutiny for data collection practices, data leaks and the spread of fake news. Some of these companies, he said, are still very young and very big.
"When you have platforms that have a billion people on them, you're going to get some of the good and some of the bad," he said.