Uber Reveals Strong Growth, Huge Losses Ahead of IPO

An Uber driver using the Uber app on her phone

Started in 2009 after its founders struggled to get a cab on a snowy night, Uber has changed the way millions of people travel and commute but continues to lose money.

Reuters reported late Tuesday that rival Uber would seek to sell around $10 billion worth of stock in an IPO, and file the offering with regulators as soon as Thursday. That would make it the largest IPO since Alibaba Group went public in 2014 with a staring valuation of $169 billion.

Uber Technologies Inc may face a cooler reception from investors than expected when it prices its initial public offering next month since smaller USA ride-hailing rival Lyft Inc's aggressive stock launch and subsequent fall.

Lyft beat Uber to the stock market last month with an IPO that raised $2.3 billion, but its shares have been backsliding after an early run-up. And the $60.12 close was 16.5 percent below Lyft's final IPO price of $72 and even under the low end of its initial price target range of $62 to $68. But its 2018 operating loss was just over $3 billion, down from the $4 billion net loss it incurred in 2017.

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. The company did not disclose how much it is planning to raise, though it was last valued at $76 billion and there have been reports it could raise $100 billion. The San Francisco-based company applied to list on the New York Stock Exchange under the ticker UBER, according to its filing Thursday with the U.S. Securities and Exchange Commission. I'm not sure I've ever read a more sprawling IPO document, which reflects Uber's sprawl. Its filings also reveal that it made a profit of $997 million in 2018.

"I'm sure that the Lyft debut is going to affect both Uber and Pinterest", Hamilton added.

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Kalanick, 42, holds a roughly 8% stake in Uber and still sits on the company's board of directors.

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

In its federal filing, Uber warned of the fierce competition it faces on that front from rivals such as Tesla and Google's Waymo, who it said could introduce autonomous vehicles earlier than Uber.

Former Expedia CEO Dara Khosrowshahi took over management of Uber in 2017 and has aimed to restore the company's standing with a more cautious approach to safety issues and acknowledgment of the company's faults.

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