Published: Sat, March 16, 2019
Economy | By

Uber plans to kick off IPO in April

Uber plans to kick off IPO in April

The deal would value Uber's Advanced Technologies Group at $US5 billion to $US10 billion, the source said.

Uber Technologies Inc is planning to file for an initial public offering in April, according to people familiar with the matter cited by Reuters.

Uber and Lyft, ride-sharing companies which represent direct competitors in the industry of getting a quick and cheap ride anywhere in the world where Lyft and Uber applications are supported, have submitted their IPO filings to the Securities and Exchange Commission at the end of 2018 around the same time. The most tragic event happened a year ago, when an Uber self-driving vehicle struck and killed a pedestrian in Arizona.

While Uber was valued at $72 billion a year ago, the company is said to be hoping for a market cap of $120 after its IPO. On the other hand, going public is expected to net about $25 billion for Lyft.


To fight against losing more money, Lyft is said to be preparing a report that would hopefully convince investors that Lyft won't stay in the red zone for too long, while investors still holding interest in Lyft and Uber are focusing on the future potential of these companies.

Japan's largest automaker Toyota injected $500 million into Uber previous year to work on self-driving cars, where both companies are seen as lagging rivals like Alphabet's self-driving unit Waymo. It had $8.1 billion in bookings in 2018, a 78 percent jump from $4.6 billion in 2017. Lyft drivers earned more than $10 billion since Lyft debuted in 2012. It would also provide Uber with cash for the venture: the company spent US$750 million on self-driving auto development in 2017, though it has since cut back.

Uber, a global logistics and transportation company most recently valued at $US76 billion ($108 billion) in the private market, is seeking a valuation as high as $US120 billion, although some analysts have pegged its value closer to $US100 billion based on selected financial figures it has disclosed.

Like this: