Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 924

Last week it was announced that Uber had confidentially filed for an IPO (right after Lyft did the same). It could go public as early as Q1 of next year. And supposedly, a valuation of $120 billion is being tossed around. The company last raised money in August of this year (from Toyota) at a $76 billion valuation.

Here are a few other interesting figures from a WSJ article published in the fall :

- Uber has indicated that it doesn’t expect to be profitable for at least another 3 years. This year it is expected to hit between $10 and $11 billion in revenue, compared to $7.78 billion last year.

- First Round Capital invested about $1.6 million in Uber’s first two fundraising rounds (2010 and 2011). If the company does in fact reach a valuation of $120 billion in the public markets, that early investment will be worth $5 billion. (First Round sold some of their shares to SoftBank in January and I’m not sure if the above figure accounts for that.)

- Over 50 companies have invested in Uber since its founding, not including a slew of individual investments from people like Jeff Bezos of Amazon.

On a related note, Fred Wilson, who is far more knowledgeable on this topic than I, recently published a post talking about the relationship between the private and public markets and what could happen to (tech) valuations in 2019. 

It’s a good follow-on read to the above .

Figure: WSJ

A few months ago I wrote about an upcoming book by Alain Bertaud called, Order without Design: How Markets Shape Cities. Well the book has just come out and CityLab just did an interview with him. 

Bertaud has worked all around the world from Yemen to China and his experiences, particularly in places that were transitioning to market economies, lend an interesting perspective.

I like this bit on designing in China:

I quickly realized that if you do not have prices to guide you, you end up relying on arbitrary norms. For example, in China, the central government decided that every home must have one full hour of sunshine each day. So you would plug in the height, latitude, and angle of the sun at winter solstice for your site, and that would formulaically spit out the permitted density of housing.

And I like the comparison he makes between food and housing supply:

I compare it to food: You can’t solve a famine by simply mandating that everyone eat 2,000 calories a day. That’s absurd. You have to bring in more food. In the same way, cities like San Francisco have to increase the supply of floor area, and let consumers determine the size of units.

So I just ordered a copy of his book . 

For the rest of his interview with CityLab, click here .

Toronto-based Drone Delivery Canada has just signed a $2.5 million agreement with the Moose Cree First Nation. This will bring the company’s drone delivery platform to the Moosonee and Moose Factory communities in northern Ontario (about 19 km south of James Bay).

Here is an excerpt from a recent Techvibes article :

“This agreement is representative of the large ‘Remote Communities’ market that we see penetrating over the next three to five years,” said Tony Di Benedetto, CEO of DDC. “The Remote Communities market is only one segment of the overall total addressable market in Canada. In addition to Canada, DDC is working with other customers around the globe to licence our FLYTE software and drone delivery technology.”

DDC’s Sparrow drone is able to handle 5 kg (~11 pound) payloads and will be used to transport letters, parcels, medical supplies, and other general necessities. 

This is a big deal for Moose Factory because the island can only be accessed by boat in the summer, ice road in the winter, and by helicopter during the rest of the year. And this is not a unique situation for remote communities.

Suboptimal infrastructure and connectivity is a common problem and generally results in a higher cost of living, among other things. So this strikes me as something that should have meaningful impact on the quality of life in these communities.