Uber's IPO Registration Is Finally Happening--With an Expected $100 Billion Valuation

Uber's IPO Registration Is Finally Happening--With an Expected $100 Billion Valuation

Drivers can also buy Uber stock at the IPO price - a whole program is set up, with an option to use their reward money toward a stock purchase.

An IPO of this size would make Uber one of the biggest technology IPOs of all time, and the largest since that of Chinese e-commerce giant Alibaba Group Holding Ltd in 2014.

Since its launch in 2009, it has aimed for global dominance of the ride-hailing industry through a cash-burning strategy of investor-subsidised fares and expanded its business in recent years to include food delivery, self-driving vehicles and alternatives to auto transport such as bikes and scooters. It reportedly plans to sell about $10 billion worth of stock, which would make it one of the largest USA tech IPOs ever coming in at an anticipated $120 billion.

Uber said in its filing its ridehailing position in the United States and Canada was "significantly impacted by adverse publicity events" and that its position in many markets has been threatened by discounts from other ride-hailing companies.

Uber in 2018 had revenue of $11.3 billion, up around 42 percent over 2017, again below the 106 percent growth the prior year. That's down from a loss of $2.6 billion in 2017.

Although Uber is no longer targeting a $120 billion valuation in the IPO, some stock bonuses to Chief Executive Dara Khosrowshahi and other company executives are only triggered when that valuation is reached.

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Lyft went public with a relatively strong operating position in the wake of the viral #DeleteUber campaign, and it claimed having about 40 per cent of the U.S. market share.

The company is seeking a valuation of between $90-$100bn, influenced by the stock performance of smaller rival Lyft Inc following its IPO last month, the sources said. The shares ended trading on Tuesday at $67.44, well below their $72 IPO price.

Aside from its flagship ride-sharing app, the company operates a food delivery service called "UberEats", which earned $1.5 billion in revenue a year ago, and a shipment fulfillment segment called "Uber Freight".

The registration will provide investors with their most complete look yet at Uber's financial and operational numbers and strong points of comparison to rival Lyft's IPO registration in March.

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 company also warned that potential future regulations or increases in insurance costs could impact the autonomous vehicle business.

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