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Uber losing US$1.8b a year, IPO filing reveals

Uber losing US$1.8b a year, IPO filing reveals

By registering its public offering on Thursday, Uber aims "to price its IPO and begin trading on the New York Stock Exchange in early May", Reuters reported. Here are five things we learned from it.

Uber's valuation in its latest private investment round was more than $70 billion, but reports said the ride-hailing giant was likely to seek a market value of close to $100 billion. "The primary issue is around the underlying metrics that Uber will discuss around take rates, ride sharing data, driver ecosystem, and a myriad of other metrics relative to Lyft which may put the company in a more negative light".

Although it is a privately held company, Uber also disclosed its quarterly results for two years "to bring in clarity and visibility".

Uber seems to have some better cost economics than Lyft, which operates only in North America and has about one-fifth of Uber's annual revenue.

Uber is a considerably larger business than Lyft, operating in countries across the globe including Brazil, Mexico and India, as well as the Middle East, where it recently acquired Careem..

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.

More so than even the usual coin-toss bet of an initial public offering, investing in Uber is nearly entirely about what it could become and less about loving the company as it exists today.

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

Uber could finally start going public on Thursday-and the company hopes to achieve one of the biggest tech IPOs in history. That will come before executives head out on a so-called road show created to drum up interest in the IPO among institutional investors who will be given the first opportunity to buy the stock before it begins trading on the New York Stock Exchange next month.

Uber grew its revenue from $3.8 billion in 2016 to $11.2 billion in 2018, but at the end of 2018, it had a loss of $1.8 billion.

Waymo, in its lawsuit, had said one of its former engineers who became chief of Uber's self-driving vehicle project took with him thousands of confidential documents. The company said it lost hundreds of thousands of users in just a few days during a #DeleteUber social media campaign that year. Despite rides being Uber's original business and accounting for the vast majority of its sales, the company spends big chunks of its IPO document talking about everything else.

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

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