Uber reveals finances as it gears up for IPO

Lloyd Doyle
April 12, 2019

Investment bankers had previously told Uber it could be worth as much as $120 billion.

Uber Technologies on Thursday filed for an initial public offering that's expected to value the ride-sharing company at upwards of $100 billion.

Uber's IPO is just the latest trouble for Lyft, which has endured an unenviable first few days as a public company having attracted skepticism about its market share growth, revenue expansion and optimistic valuation. The company lost $4 billion in 2017.

The San Francisco-based company reported $11.3 billion in revenue previous year, a sharp increase from the $7.9 billion in revenue in 2017. In addition to ride-hailing, its business includes bike and scooter rentals, freight hauling, food delivery, and an expensive self-driving auto division.

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.

Uber, which was founded in 2009, has completed a total of over 10 billion rides and has expanded to more than 700 cities in over 60 countries.

Uber and Lyft signs are seen on a auto in Redondo Beach, California, U.S., March 25, 2019. That would make it the largest IPO since Alibaba Group went public in 2014 with a staring valuation of $169 billion.

Uber drivers might not get health insurance or other benefits, but after the ride-hailing company filed to go public Thursday, it's paying out long-time drivers with a cash reward and an option to invest in the company.

Travis Kalanick, the former CEO who resigned in 2017 under pressure from the board, is one of Uber's largest shareholders, owning almost 9 per cent of the ride-hailing company's stock. And it's likely to be the largest among USA tech companies since Facebook took its bow on Wall Street seven years ago at a time when most people hadn't ever considered using an app on their smartphone to summon a ride from strangers driving their own cars. The company is also considered a forerunner in ongoing efforts by tech leaders to develop autonomous vehicle technology, though Uber suffered a significant setback past year when one of its vehicles fatally struck a pedestrian in Arizona.

Other reports by Iphone Fresh

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