Uber sets course for IPO, but prospectus shows slowing growth

Lloyd Doyle
Апреля 14, 2019

For a roadmap as to how volatile chain partnerships can be for food delivery companies, Uber Eats can look no further than Grubhub, which filed for its IPO in 2014.

The S-1 filing underlines Uber's rapid growth in the last three years but also how a range of public scandals and increased rivalry from competitors have weighed on its strategies to attract and retain riders. Included in the S-1 was Uber's net income for 2018, which increased to $997m, a major jump in income from its 2017 net loss of over $4m. Incidentally, the IPO filings show the USA department of justice is investigating potential improper payments to police by Uber in multiple markets including India. The company reported $8.1 billion in bookings over the course of 2018.

Among other matters, Uber demonstrated the U.S. Justice Department is conducting a criminal investigation into a yearlong cover-up of a huge computer break-in during 2016 that heisted personal information belonging to millions of drivers and passengers.

"We will not shy away from making short-term financial sacrifices where we see clear long-term benefits", he said.

His notice of optimism and contrition struck in a letter contained in the national documents.

Uber Eats addressed its small order problem last month by charging app users a $2 flat fee on orders under $10, in addition to existing charges, to make up for losses.

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Profitability has been demonstrated to be a challenge for both Lyft and Uber. But even with Lyft, as well as other companies, precise comparisons are hard to peg because of Uber's diverse business verticals, the person said.

Uber said it intends to give bonuses to qualified motorists and is setting apart an additional part of its inventory for drivers to buy.

Its history that is unprofitable could induce its prices that are ride-hailing to be finally raised by Uber unless it expand to other markets and lines of business or could reduce its costs by shifting to cars. "That is an indication that'll be looked on positively in the upcoming few weeks". In the IPO documents, Uber mentions the competitive pressure it has been facing here in both ride-sharing and food-delivery business from Ola, Zomato and Swiggy, and that they may have the advantage of being a local player. Lyft's stock now is hovering around $61, down from its IPO price of $72.

The rocky beginning might have prompted Uber to tamp down its IPO aspirations. Reuters reported this week that Uber plans to sell around $10 billion worth of stock at a valuation of between $90 billion and $100 billion. That's below earlier estimates of $120 billion.

Uber lists Seattle's law, as well as New York's one-year freeze on new Uber drivers and San Francisco's proposed surcharge on ride-sharing as "Regulatory Risks Related to Our Business".

Going public doesn't guarantee the company will make money. And it is very likely to be the biggest among USA tech firms because Facebook took its bow on Wall Street seven decades ago in a time when most people hadn't ever considered using an app on their smartphone to muster a ride from strangers driving their own cars.

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