Uber files paperwork for its initial public offering

According to Bloomberg, the ridesharing giant, Uber should be the biggest IPO of 2019 with 10 billion dollars in estimates for their public offer, while people who are familiar with the matter are said to have spoken to Bloomberg regarding the date of the IPO.

Uber Technologies Inc. has said it will list on the New York Stock Exchange, in a deal likely to value the USA ride-hailing firm at up to $100 billion.

Uber in 2018 had $11.3 billion revenue, up around 42 percent over 2017, but below the 106 percent growth the prior year.

Analysts at one City broker have warned that Uber Technologies Inc's upcoming IPO could spell bad news for online takeaway marketplace Just Eat PLC (LON:JE.).

But Uber's operating losses declined from $4 billion in 2017 to $3 billion in 2018, indicating it could be heading in the right direction.

Its unprofitable history may force Uber to eventually raise its ride-hailing prices unless it can reduce its costs by shifting to driverless cars or expand into other markets and lines of business.

The S-1 filing underscores Uber's rapid growth in the last three years but also how a string of public scandals and increased competition from rivals have weighed on its plans to attract and retain riders.

While Uber has often said that India is a high-growth market, the prospectus also pointed out that the country is among the few where average revenue per bookings is low, apart from facing stiff competition and regulation. Incidentally, the IPO filings show the U.S. department of justice is investigating potential improper payments to police by Uber in multiple markets including India.

"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.

This season, the investment bankers managing the IPO of Uber are expected to reveal a pricing array for the stocks of Uber.

The company is on track to price its IPO and begin trading on the New York Stock Exchange in early May.

Even though Lyft gained an advantage by going public weeks before Uber announced their public filing for IPO, many watchdogs of the market consider that Lyft is still Uber's "little brother".

Uber is also expanding in other markets such as freight while offering other ways to get around with shared scooters and bikes. Travis Kalanick, who was ousted as CEO in 2017 but still owns 8.3 percent of the company's pre-IPO shares valued at roughly $9 billion, will likely see his wealth multiply by billions of dollars. It launched its first self-driving test vehicle in 2016 and its self-driving auto division has more than 1,000 employees, and it has built more than 250 self-driving cars so far.

The parent firm of Google, alphabet, owns 5 percent of the company as it competes with Uber on self-driving technology. Uber notes that Waymo has already introduced a limited ride-hailing service in Arizona, and concedes that other competitors could launch similar services before Uber can do the same.

  • Wendy Palmer