Economy

High Expectations Overshadow Uber's IPO Filing

High Expectations Overshadow Uber's IPO Filing”

The ride-sharing company said it intends to trade on the New York Stock Exchange under the ticker "UBER".

Barely two weeks into its life as a public company, Lyft Inc. shares have been sliding fast with bigger rival Uber Technologies Inc. breathing down its neck. If successful, Uber would attain a valuation of between $90 million and $100 billion and the largest tech IPO since Chinese e-commerce business Alibaba in 2014. It said its revenue past year rose 42 per cent to reach $US11.3 billion ($NZ16.8b), and it achieved a $US1b profit, derived from selling some of its overseas businesses. Uber said in its filing it expects operating expenses to "increase significantly in the foreseeable future" and cautioned it "may not achieve profitability".

Uber will follow Lyft in going public.

Uber's projected valuation would be higher than its most recent private valuation of $76 billion, but less than its rumored $120 billion target-likely a recalculation due to Lyft's slow entrance to the public market.

There are 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.

A #DeleteUber campaign surged on social media in 2017 after a public relations crisis, which Uber said in its filing meant hundreds of thousands of consumers stopped using its platform within days.

After the close of trading on Wednesday, Lyft announced that it would release financial results for its first fiscal quarter ended March 31 after the market closes on May 7.

Uber continues to be heavily loss-making despite its significant growth and expansion into new businesses, the taxi app has revealed as it filed to go public in NY.

Uber is reserving some shares in the IPO for drivers who have completed 2,500 trips among other criteria.



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