UBER: GSA Inks Global Rideshare Deal with Uber — But $200M IPO Settlement Still Weighs
Court: N.D. California
Case: 3:19-cv-06361
Uber (NYSE:UBER) has landed a five-year Blanket Purchase Agreement (BPA) with the U.S. General Services Administration (GSA), positioning the company as a key player in federal travel services across over 70 countries. While this partnership may open global doors, the legal consequences of its controversial IPO still linger — including a $200M settlement with investors.
🚘 Government Rides, Streamlined
- BPA Scope: The agreement allows federal employees, contractors, and military personnel to use Uber for mission-critical travel.
- Global Access: The program includes 15,000+ cities in 70 countries, streamlining rideshare logistics through Uber for Business profiles.
- Enhanced Tools:Mission-specific support tools for agenciesAccess to high-capacity vehiclesCentralized expense tracking
- Part of OneGov: The GSA’s “OneGov” strategy aims to reduce federal travel costs and eliminate duplication across agencies.
💼 Strategic Value for Uber
- Federal Footprint: The contract renews Uber’s 2020 $810M BPA, strengthening its foothold in government procurement.
- Operational Boost: Signals greater institutional trust in Uber’s compliance capabilities and scalability for government-grade services.
- Market Signal: Comes as Uber diversifies beyond rideshare into mobility infrastructure and fleet solutions for public-sector clients.
🧾 But $200M IPO Legal Overhang Remains
Despite its government milestone, Uber is still grappling with investor backlash over its 2019 IPO, which prompted a $200M legal settlement.
📆 Timeline Overview
- May 9, 2019: Uber raises $8.1B in its IPO at $45/share
- August 8, 2019: Reports $5.2B Q2 loss and sluggish revenue growth
- October 4, 2019: Investors sue over misleading financial projections and safety disclosures
💼 Allegations Include
- Misrepresenting Uber’s business model viability
- Bypassing local regulations in global markets
- Concealing safety issues, including:5,981 sexual assaults107 crash-related deaths19 fatal assaults within two years of IPO
💰 Investor Update
- Settlement Amount: $200 million
- Allegations: Fraud and misleading disclosures tied to IPO and early performance metrics
👉 You can check more information about it and file for a payout HERE.
As Uber expands its enterprise reach with the U.S. government, its past legal and operational risks remain a critical reminder of the company’s journey — from aggressive growth to cautious institutional trust.