Published: Fri, April 12, 2019
Money | By Arnold Ball

Uber IPO Filing Shows $10 Billion in Operating Losses Since 2016

Uber IPO Filing Shows $10 Billion in Operating Losses Since 2016

Uber officially filed for an initial public offering on Thursday.

The long-awaited filing gives potential investors their first look at hundreds of pages of detailed information about Uber, which was founded in 2009 and has had a winding road to the public market.

During the IPO roadshow, Uber's chief executive, 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.

Uber officially filed paperwork with federal regulators on Thursday, giving investors an inside financial snapshot of the global ride-hailing giant ahead of its debut on the public market this spring. That profit was driven primarily by the sales of assets in Southeast Asia and Russian Federation, as well as an increase in the estimated value of its stock in China's largest ride-hailing company, Didi Chuxing. Uber said it spent $14.3 billion in 2018.

Uber's filing follows rival Lyft Inc.'s US$2.34 billion IPO in March, which is the biggest U.S. IPO so far this year.

Its unprofitable history may force Uber to eventually raise its ride-hailing prices unless it can reduce its costs by shifting to driverless cars or expand into other markets and lines of business.

Airstrike forces closure of Libya’s only operational airport
Its elite force, Saiqa (Lightning), numbers some 3,500, while Haftar's sons also have well-equipped troops, LNA sources say. The two sides have also continued to trade blows over three strategic airports near Tripoli.

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.

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

But Uber's operating losses declined from $4 billion in 2017 to $3 billion in 2018, indicating it could be heading in the right direction. Lyft increased the number of shares that were sold and priced them at $72 per share - the top of an elevated range - then watched as they jumped 21 percent at the opening bell. It has, however, struggled to stem its billions of dollars of losses and has been forced to exit some markets, caving to competition from local rivals.

Uber set a placeholder amount of $1 billion but did not specify the size of the IPO.

The company is expected to begin trading on the New York Stock Exchange under the ticker UBER as early as May. Morgan Stanley and Goldman Sachs Group Inc. are leading the offering.

Alphabet, the parent company of Google, owns 5per cent of the company, even as it competes with Uber on self-driving technology.

Like this: