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. The company is on track to price its IPO and begin trading on the New York Stock Exchange in early May. Uber said it spent $14.3 billion in 2018.
Among other things, Uber revealed the U.S. Justice Department is conducting a criminal investigation into a yearlong cover-up of a massive computer break-in during 2016 that heisted personal information belonging to millions of passengers and drivers. Investment bankers had previously told Uber it could be worth as much as $120bn. Shares in its smaller rival closed at $61.01 on Thursday, 15 percent below its IPO price set late last month, a development which has had chilling signal for other tech start-ups looking to go public. That would make it the largest IPO since Alibaba Group went public in 2014 with a staring valuation of $169 billion.
A representative for Uber declined to comment.More news: Stream The Nipsey Hussle 'Celebration Of Life' Memorial
Since its launch in 2009, it has aimed for global dominance of the ride-hailing industry through a cash-burning strategy of investor-subsidised fares and expanded its business in recent years to include food delivery, self-driving vehicles and alternatives to auto transport such as bikes and scooters.
In addition to answering questions about the company's finances, Uber CEO Khosrowshahi will be tasked with convincing investors that he has successfully changed the culture and business practices after a series of embarrassing scandals over the last two years.
Uber launched in 2009 as UberCab, a black auto service where customers could hail professional drivers with a few taps on a smartphone.More news: Amazon Fab Phones Fest: OnePlus 6T available at its lowest price ever!
Lyft lost $950 million in 2018 on the same basis. Now it will be up to Kalanick's successor, Khosrowshahi, to persuade investors that Uber has cleaned up its act and merits a market value higher than Ford Motor and General Motors combined.
"With Uber, investors will soon have a second option to make a bet on the future of mobility and transportation with the clear market share leader", Wedbush analysts said in client note. The company resumed testing self-driving vehicles in Pittsburgh in December. Alphabet also owns roughly 5% of Lyft's stock.More news: Police makes arrests of some suspects in American tourist, guide