Uber plans to kick off IPO in April

Marco Green
March 16, 2019

Ride-hailing company Uber Technologies Inc is planning to kick off its initial public offering in April, putting it close on the heels of its smaller rival Lyft Inc, people familiar with the matter said on Thursday.

The actual piece of news today comes courtesy of Reuters, who broke the story that the world's most popular mobile ride-hailing app will be making public the S-1 filing, which is the document that outlines Uber's financials ahead of its public offering.

Japan's largest automaker Toyota injected $500 million into Uber a year ago to work on self-driving cars, where both companies are seen as lagging rivals like Alphabet's self-driving unit Waymo. Lyft, meanwhile, is looking for a market valuation between $20 billion and $25 billion after being valued at $15 billion in its most recent private funding. And a successful IPO for Lyft would allow Uber to benefit from market euphoria and also demand a high valuation.

While Uber was valued at $72 billion a year ago, the company is said to be hoping for a market cap of $120 after its IPO. But the company lost $3.3 billion, excluding gains from the sale of its overseas business units in Russian Federation and Southeast Asia. In the case of Uber and Lyft, however, many large institutional investors already have access to the companies through participation in private rounds of investment. Lyft, by contrast, said in its prospectus that its 2018 revenue totaled $2.2 billion and a loss of $911 million, which according to Axios would be the largest loss ever for a company entering the public markets for the first time.

It could also help underscore Uber's value as the ride-hailing firm prepares for a stock market debut.

Uber is reportedly about to get a big financial boost for its self-driving unit. Taking on large investors that will influence a key business is an unusual move for a company so close to an IPO.

Dara Khosrowshahi, chief executive officer of Uber, has previously said a culture change is a work in progress.

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.

Other reports by Click Lancashire

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