In IPO, Uber reveals 91 million users but slowing growth

Andrew Cummings
April 12, 2019

Uber's offering is expected to be the largest U.S. IPO this year and among the 10 largest of all time, and a person familiar with the matter said the company is seeking to raise about $10 billion. That will come before executives head out on a so-called road show created to drum up interest in the IPO among institutional investors who will be given the first opportunity to buy the stock before it begins trading on the New York Stock Exchange next month. That compares to a net loss of $4.03 billion in 2017 on revenue of $7.9 billion, the filing shows.

Uber's IPO is just the latest trouble for Lyft, which has endured an unenviable first few days as a public company having attracted skepticism about its market share growth, revenue expansion and optimistic valuation.

Uber said it operates on six continents with some 14 million trips per day and has totalled more than 10 billion rides since it was founded in 2010.

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.

Lyft Inc. shares took yet another nosedive on Wednesday amid reports that larger rival Uber Technologies Inc. could be filing for an initial public offering as soon as Thursday. 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.

Uber said it had 91 million registered users on its platform through the end of 2018.

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.

Kalanick is one of Uber's largest shareholders, owning almost 9% of the company's stock.

The investment bankers handling Uber's IPO are expected to reveal a pricing range for Uber's shares later this month.

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".

But it suspended testing when one of its self-driving vehicles struck and killed a pedestrian in Arizona previous year.

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