Uber files paperwork for its initial public offering

Uber has referred to a growing number of competition laws across the EU the US Brazil and India as an area of concern

In the same period, revenue hit $11.3 billion - up 42 percent from $7.9 billion in 2017 - but the company ultimately lost $1.0 billion in 2018, down from the $4.0 billion it lost a year earlier.

In its initial public offering filing on Thursday, Uber revealed that Japan's SoftBank Group Corp. -controlled SoftBank Vision Fund was its largest shareholder with a 16 percent stake.

At the same time, Uber costs continue to grow, with a figure of $ 14.3 billion previous year, which is 19% more than in 2017.

Its number of monthly users, who turn to Uber for not only rides but also services like food delivery, was 91 million last year, up 34 per cent from a year earlier.

Uber said it operates on six continents with some 14 million trips per day and has totaled more than 10 billion rides since it was founded in 2010.

Global ride-sharing major Uber has warned in its IPO filing that the company may never make profits as its operating expenses are likely to increase "significantly in the foreseeable future".

The company is expected to try to raise roughly $10 billion and seeks a market value of $90 billion to $100 billion, according to the Wall Street Journal.

Although Uber is not targeting a $120 billion valuation in the IPO any longer, some stock bonuses to CEO Dara Khosrowshahi and other executives of the company are only triggered when that valuation is reached.

"In my opinion if you are buying into Uber or Lyft you're buying into a belief this is going to revolutionize transportation in the future".

It is expected to see the public IPO files for Uber IPO already on April 11 when all important details regarding the upcoming IPO will become available to investors and interested parties.

The company is on track to price its IPO and begin trading on the New York Stock Exchange in early May. TOI previously reported Uber was looking to sell its food delivery business to Swiggy here, but the talks have paused for now due to regulatory and tax complexities.

Waymo, in its lawsuit, had said one of its former engineers who became chief of Uber's self-driving vehicle project took with him thousands of confidential documents. In other parts of the world, Uber also provides discounts to riders and incentives to drivers as competitors fight for market share.

The blowback from the problems helped Lyft pick up ground in the USA - something Uber acknowledged in its filing - and led to the ouster of Uber co-founder Travis Kalanick as CEO in 2017.

Its history that is unprofitable could induce its prices that are ride-hailing to be finally raised by Uber unless it expand to other markets and lines of business or could reduce its costs by shifting to cars. Now it will be up to the successor, Khosrowshahi of Kalanick, to convince investors who Uber has cleaned up its act and values that a market value greater than Ford Motor and General Motors combined.

In 2017 Uber's toxic culture resulted in a campaign that saw hundreds of thousands of people delete their accounts, an issue that is addressed in their IPO. The company claims more than 65 percent market share in the United States and Canada, versus Lyft's stated 39 percent in the United States.

Related:

Comments


Other news