Uber files for IPO

Uber Technologies Inc on Thursday filed publicly with the US Securities and Exchange Commission for its initial public offering, taking it a step closer to one of the largest technology stock listings of all time.

The Uber filing gives the first comprehensive financial picture of the ride-hailing and transportation services company. 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.

The filing revealed Uber had 91 million users on its platforms at the end of 2018. Uber set a placeholder amount of $1 billion but did not specify the size of the IPO.

Uber last year had revenue of $11.3 billion, while gross bookings from rides was $50 billion. But the company lost $3.3 billion, excluding gains from the sale of its overseas business units in Russia and Southeast Asia.

Reuters reported this week that Uber plans to sell around $10 billion worth of stock at a valuation of between $90 billion and $100 billion. Investment bankers had previously told Uber it could be worth as much as $120 billion.

Uber will follow smaller rival Lyft Inc in going public, and both companies have reported massive losses. Uber said in its filing it expects operating expenses to "increase significantly in the foreseeable future" and cautioned it "may not achieve profitability."

There are also questions about how Uber will navigate any transition towards self-driving vehicles, a technology which is seen as potentially dramatically lowering costs but which could also disrupt its business model.

After making the public filing, Uber will begin a series of investor presentations, called a roadshow, which Reuters has reported will start the week of April 29. The company is on track to price its IPO and begin trading on the New York Stock Exchange in early May.

One advantage Uber will likely seek to play up to investors is that they are the largest player in many of the markets in which it operates. Analysts consider building scale at a critical mass is crucial for Uber's business model to become profitable.

In addition to questions about its finances, Uber CEO Dara Khosrowshahi will be tasked with convincing investors that he has successfully changed the company's culture and business practices after a series of embarrassing scandals over the last two years.

Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.

Reuters