Uber files for IPO, says 'may never make profits'

Mae Love
April 15, 2019

In 2018, revenue grew by 42% to $ 11.3 billion compared with this figure a year earlier. The business is expected to attempt and increase about $10 billion and also expects a market value of $90 billion to $100 billion, according to the Wall Street Journal. Its rival Lyft went public on March 29th at $72 a share; its share price has since fallen 11 percent to $61.01 at the close of trading today.

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. But the filing did not specify the size of the IPO.

However, Uber losses declined from $4 billion in 2017 in 2018, suggesting it could be heading in the right direction.

Human cloud, ride-sharing firm Uber Technologies Inc. filed its IPO prospectus on Thursday with the US Securities and Exchange Commission.

Uber will follow Lyft in going public.

Some investors are similarly bullish about Uber's future, especially as it relates to autonomous driving technology. The long-awaited documents give potential investors a look inside the company's financial state before its highly anticipated IPO, which is expected later this month. Other issues that the company discloses include relationship with Google and the status of drivers as contractors rather than employees. Additional regulation of our pricing model could increase our operating costs and adversely affect our business.

Uber said it made a profit of $ 997 million in 2018, mainly from the sale of part of its business in Southeast Asia and Russian Federation.

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.

The company has pointed at risks linked to use of cash too.

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There have many numerous instances over the years of Uber drivers assaulting their passengers, and the company warns there is likely to be more in the future.

Uber fears that drivers engaging criminal activities would have a serious impact on their business.

The company posted a gain of $997 million but that doesn't imply its ride-hailing service suddenly started to earn money - far away from it.

Uber is now in the process of trying to build itself into a one-stop shop for many different modes of transportation, including bikes, scooters, vehicle sharing, and public transportation.

Uber has been investing substantially in self-driving vehicles, which could be critical to reducing driver costs and achieving profitability.

Uber have fallen behind slightly in the race to create self-driving cars. The company said it sustained an operating loss of $3 billion. Uber notes that Waymo has already introduced a limited ride-hailing service in Arizona, and concedes that other competitors could launch similar services before Uber can do the same.

"While we have taken significant steps to rehabilitate our brand and reputation, the successful rehabilitation of our brand will depend largely on maintaining a good reputation, minimizing the number of safety incidents, improving our culture and workplace practices, improving our compliance programs, maintaining a high quality of service and ethical behavior, and continuing our marketing and public relations efforts".

The ridesharing giant is also working on self-driving robots that should work on food deliveries for UberEats, additionally planning on expanding the business to food and freight delivery on bicycles and motorcycles. The setbacks have contained allegations and uncontrolled inner sexual harassment it destroys automobile technology. Khosrowshahi joined Uber in 2017 to replace company co-founder Travis Kalanick who was ousted as CEO.

But the company is trying to put the Kalanick era behind it, and that's clear in the filing.

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