Uber Plans to Go an IPO

Uber Plans to Go an IPO

Uber may also want to distance itself from Lyft, which priced its shares at $72 each in its $2.34 billion IPO in March.

The disclosure also indicated how far Uber remains from turning a profit, with the company stating it expects operating expenses to boost significantly in the foreseeable future and it "may not achieve profitability". Chief Financial Officer Nelson Chai, a longtime banking executive who weathered the 2008 financial crisis at Bank of America, joined Uber past year.

The ride-hailing service revealed that in 2018, gross bookings climbed to $49.8 billion, a 45 percent increase from the $34.4 billion generated a year earlier. Uber contends its larger scale will help it fend off rivals and allow it to more easily enter new transportation-related businesses around the world. For ride-sharing specifically, revenue increased 33% year over year to $9.2 billion in 2018.

Uber set a placeholder amount of $1 billion but did not mention the size of the IPO.

Media reports this week said the San Francisco-based company seeks to sell about $10 billion worth of stock, valuing the stock between $90 billion and $100 billion. Revenue from Uber Eats almost tripled to US$1.5 billion last year from US$587 million a year earlier.

Uber would be the largest initial public offering since that of Chinese e-commerce company Alibaba Group Holding Ltd in 2014, which raised $25 billion.

Uber's filing follows the debut last month of its competitor Lyft on the Nasdaq Global Select Market. Alphabet also owns approximately 5% of Lyft's stock.

After making the public filing, Uber will begin a series of investor presentations, called a roadshow, which Reuters has reported will start the week of April 29. This will return before executives head out on a so-called street series created to drum up interest in the IPO among institutional investors that will be given the first opportunity to buy the inventory before it starts trading on the New York Stock Exchange.

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As Uber continue to prioritise growth over profits, the ride-hailing giant's revenue has plateaued.

Waymo, in its lawsuit, had said one of its former engineers who became chief of Uber's self-driving auto project took with him thousands of confidential documents.

In its federal filing, Uber warned of the fierce competition it faces on that front from rivals such as Tesla and Google's Waymo, who it said could introduce autonomous vehicles earlier than Uber.

The bankers will also tout the public company experience of Uber's management team, which presented its business to bank analysts last month, one of the people said. Its fast-growing food delivery business, which spans 500 cities globally, doubled its revenue to $757 million in 2018 from $367 million in 2017.

Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.

A #DeleteUber campaign surged on social media in 2017 after a public relations crisis, which Uber said in its filing meant hundreds of thousands of consumers stopped using its platform within days. For context, Uber has been exiting markets like China, Southeast Asia and Russian Federation by merging operations with rivals who were forcing the company to burn more capital for competitive reasons.

It's hard to what, if any, change Uber's IPO will have on riders.

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