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Uber Unveils IPO But Warns Of A Possibility Of Not Making Profit

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In its IPO (Initial Public Offering) filing on Thursday, Uber Technologies Inc gave the first comprehensive financial picture of the company that was started a decade ago by founders Garrett Camp and Travis Kalanick.

The S-1 filing pointed out to the rapid growth in the last three years but also how public scandal and competition from rivals have diminished its plans to attract riders. It disclosed how far from earning profits the company is and cautioned on expecting the operating expenses to "increase significantly in the foreseeable future" and that it "may not achieve profitability." In 2018, Uber lost $3.03 billion from operations.

Uber Unveils IPO But Warns Of A Possibility Of Not Making Profit
 

In its filing with the U.S. Securities and Exchange Commission Uber revealed that the company had 91 million average monthly active users across its platforms at the end of 2018. The numbers are 33.8 percent higher than those in 2017 but 51 percent lower than the year before. In 2018, Uber made $11.3 billion in revenue, 42 percent higher over 2017, but below the 106 percent growth the prior year.

The ride service hailing company has set a placeholder amount of $1 billion but did not specify the size of the IPO. It will follow its rival in the US market, Lyft, in going public.

Following the public filing, Uber will begin a series of investor presentations, called a roadshow, which according to a Reuters report will start the week of 29 April.

It is on track to price the IPO and being listed on the New York Stock Exchange (NYSE) in early May.

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

Read more about: uber
Story first published: Friday, April 12, 2019, 11:49 [IST]
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