Uber files with SEC for its IPO

Uber Technologies Inc. filed for an initial public offering, starting the clock on what's expected to be the biggest USA listing this year.

"Uber accounts for less than one percent of all miles driven globally".

Uber previous year had revenue of $11.3 billion, while gross bookings from rides was $50 billion. It'll probably be the largest since Chinese e-commerce giant Alibaba went public with a market valuation of $169 billion in 2014.

Uber is a considerably larger business than Lyft, operating in countries across the globe including Brazil, Mexico and India, as well as the Middle East, where it recently acquired Careem.. The company also said its technology for matching supply and demand is relevant to auto rides, scooter trips, restaurant meal orders and shipping bottles of water across the U.S.

"The outlook for growth is weak and the outlook for profits potentially still weaker".

Uber estimates the stake it got from Didi, whose other investors include tech giant Apple, was equal to about 18.8% of the company when the pair combined their China-based vehicle services in August 2016.

"Our continued success will come from stellar execution and the strength of the platform we have worked so hard to build", said CEO Dara Khosrowshahi in a letter in the filing. Still, the prospectus invites new scrutiny.

Even though Uber and Lyft both submitted their confidential IPO filings to the SEC on December 6, 2018, Uber's decision-makers are reportedly able to learn from Lyft's mistakes, according to Bloomberg. Morgan Stanley and Goldman Sachs Group Inc. are leading the offering.

The company filed for its Initial Public Offering (IPO) on Thursday and would be listed on the New York Stock Exchange (NYSE) under the symbol "UBER". Uber's operating loss, for example, amounted to 27 percent of revenue in 2018, while Lyft's operating loss was 45 percent of revenue.

Revenue growth also slowed.

FILE PHOTO: A photo illustration shows the Uber app on a mobile telephone, as it is held up for a posed photograph, in London, Britain November 10, 2017. But revenue in 2017 had more than doubled from 2016.

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

Silicon Valley tech workers were quick to embrace Uber, but it wasn't until around 2013 that the service took off more broadly. The ride-hail company has also put a lot of investment into building out its brand beyond taxi services.

The company also has high hopes for electric bikes and scooters that it operates in dozens of cities under its Jump brand.

While insurance companies have yet to fully get behind the idea of ridesharing - or even gig economy businesses, in general - the revolutionary business models continue to disrupt the industry.

"They're showing that they're capable of controlling their costs, which has been a concern of ride sharing companies in general", said SharesPost analyst Alejandro Ortiz. It has also invested in Uber Eats and is beefing up Uber Freight, its long-haul-trucking division. The shares are down about 15 per cent from the eventual debut price of US$72.

Most of the shares sold would be issued by the company, while a smaller portion would be owned by investors cashing out, one of the sources said. The bonuses range from as little as US$100 up to US$10,000, based on how many trips the driver has completed.

Uber said it plans to give bonuses to qualified drivers and is setting aside an undisclosed portion of its stock for drivers to buy.

  • Anthony Vega