Published: Mon, April 15, 2019
Business | By Eloise Houston

Uber kicks off its bid to become a public company

Uber kicks off its bid to become a public company

In the filing, Uber reported 2018 revenue of $11.27 billion and net income of $997 million.

One advantage Uber will likely seek to play up to investors is that it is the largest player in numerous markets in which it operates. Last month, Uber Freight announced a rollout across Europe.

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 massive filing shows Uber has been generating the robust revenue growth that entices investors, but also racked up almost $8 billion in losses over its 10 years in existence, which mirrors the same trend challenging Lyft, Uber's main rival in the U.S.

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.

The company posted a profit of $997 million previous year, but that doesn't mean its ride-hailing service suddenly started to make money - far from it.

Uber will follow Lyft in going public.

While Uber's competitor, another prominent ridesharing company, Lyft, already went public at the end of March under the thicker (LYFT), raising 2.3 billion dollars at the price of 72$ per share, investors are eager to see whether Uber will encounter an equal enthusiasm in the market once the company goes public. 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.

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.

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. "Our revenue is dependent on the pricing model we use to calculate consumer fares and driver earnings", said the company.

In the filing, the company struck a cautious note about its autonomous future.

A key question facing Uber now is if it wants to keep pouring funds into its unprofitable ride-hailing business or redirect the tons of cash from its IPO into more profitable ventures such as Uber Eats food delivery startup.

"We depend on a limited number of suppliers for our dockless e-bikes, and on a single supplier for our e-scooters that also supplies our primary competitors", the filing says. The setbacks have contained allegations and uncontrolled inner sexual harassment it destroys automobile technology.

But now many of those people stand to make millions - if not billions - of dollars as the company roars onto the stock exchange.

Travis Kalanick, the former CEO who stepped under stress in 2017 in the board, is one of Uber's biggest shareholders, owning nearly 9% of the company's stock.

But the company is trying to put the Kalanick era behind it, and that's clear in the filing.

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