Daily Trends Now
Daily Trends Now

Uber files to go public as losses mount

Uber files to go public as losses mount

Uber will follow Lyft Inc in going public.

Uber officially filed for an initial public offering on Thursday. It is 285 pages, plus 83 more of financial statements. The company is expected to try to raise roughly $10 billion and seeks a market value of $90 billion to $100 billion, according to the Wall Street Journal.

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

For the Uber optimists, there was plenty to like.

Uber's revenue totaled $11.3 billion in 2018, a 42 per cent increase from $7.9 billion in 2017. This is not a hypergrowth company anymore, at least not in its biggest business of rides on-demand. At the end of 2018, Uber Eats, its most talked-about business, had gross bookings of $2.6 billion.

To Uber's credit, it is firing off a cannon-sized number of metrics at investors.

"Some of the attributes that made Uber a wildly successful startup - a fierce sense of entrepreneurialism, our willingness to take risks that others might not, and that famous Uber hustle - led to missteps along the way", Khosrowshahi wrote, closing his letter by assuring he will run Uber with integrity. Uber, however, posted an adjusted EBITDA loss of $1.85 billion in 2018.

The overall message: Uber is complex.

Uber filed with an initial offering amount of $1 billion, typically a placeholder amount used to calculate fees that will change.

"There's no discernable way these companies are valued". Growth in the value of transactions from rides slowed to 25 percent in the fourth quarter of 2018 from 44 percent in the early part of the year.

"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.

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. The ride-hail company has also put a lot of investment into building out its brand beyond taxi services. This company is everything and everywhere. "While we have had unparallelled growth at scale, we are just getting started".

But the prospectus renewed questions about how sustainable Uber's business actually is.

Uber also engages in some sleight of hand about the ties connecting all its businesses.

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.

Uber has 91 million users, but growth is slowing and it may never make a profit, the ride-hailing company said in the filing.

Uber is reserving some shares in the IPO for drivers who have completed 2,500 trips among other criteria.

The world's largest taxi-hailing company revealed that it made a $3 billion operating loss a year ago as it published the prospectus for its initial public offering (IPO).

"We will not shy away from making short-term financial sacrifices where we see clear long-term benefits."
It's also the most important sentence about Uber. That is an odd thing to say for a company that has been unprofitable for 10 years.


editors' picks

April 12, 2019
Some Sudanese Oppose Idea of Military Council
This comes as people are celebrating in the streets of Khartoum on Thursday following reports of al-Bashir's ouster. Officials say 49 people have died in protest-related violence since the demonstrations first erupted in December.

April 10, 2019
Congress manifesto speaks Pakistan's stand on Kashmir: PM Modi in Maharashtra rally
The election will be held in seven phases and votes will be counted on May 23, with results likely to be clear the same day. Pakistan responded with air strikes of its own.

April 09, 2019
Southampton Vs. Liverpool: Reds Win, Break Saints’ Resolve With Late Goals
For Van Dijk, he believes these late rallies are no coincidence and thinks they are down to the talent in the Liverpool ranks. He is so important to us, not only as a player but as a person as well. "You can see the quality we've got".

April 07, 2019
Air raids target Haftar's advancing forces near Tripoli
The UN had been planning to hold a conference in Libya later this month for talks over ending the country's long-running crisis. The LNA is allied to a parallel administration based in the east of the oil-rich North African country.

April 07, 2019
Debris from anti-satellite test no danger to ISS, India says
All critical technologies for the test were developed indigenously and about 90% of the entire test in indigenous, Dr. Addressing the mediapersons, Reddy also said, "For a similar application we don't need another test".

April 06, 2019
Pep Guardiola writes ahead of FA Cup semi-final
We've won our first two - The FA Community Shield and the EFL Cup final - so let's hope we can make it three today. Mendy alone can not help us arrive in the end of April with the challenge of winning something more.

April 05, 2019
Newest iPhone Rumors: Apple Including the Stuff Samsung Already Has
In terms of battery life, Powerbeats Pro are able to last up to 9 hours or more than 24 hours when you count their charging case. Apple-owned Beats is announcing its own new wireless earbuds just weeks after Apple launched its new AirPods earbuds.

April 03, 2019
Alliance of American Football suspending 'all football operations,'
He's still with the Memphis Express, although he's been replaced as the starting quarterback after a dismal start. At the time, Ebersol said he viewed his business as "a tech company that owns a football league".

April 02, 2019
Rapper Nipsey Hussle Fatally Shot Outside Of His LA Clothing Store
He also shared a video of a young Hussle in which he said he wanted to invest his earnings to "take care of my people". He continued to release mixtapes over the years, collaborating with Rick Ross, YG, DJ Mustard and many others.

March 31, 2019
All Brexit options are on the table: UK Conservatives chair
Friday's vote, on the day that the country was originally due to leave the bloc, kept Britain in political turmoil. She took office in the aftermath of the 2016 Brexit referendum which swept away her predecessor David Cameron.