Uber Reveals Strong Growth, Huge Losses Ahead of IPO

Uber Reveals Strong Growth, Huge Losses Ahead of IPO

As expected, Uber on Thursday dropped its initial offering document to pitch its business to investors, and befitting the company's size and complexity, it was a doozy.

The big valuation in Uber's IPO papers comes after a 2018 valuation of the company that placed it at $76 billion on the private markets when Toyota invested, reported Bloomberg.

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.

Aside from its flagship ride-sharing app, the company operates a food delivery service called "UberEats", which earned $1.5 billion in revenue a year ago, and a shipment fulfillment segment called "Uber Freight".

Uber Technologies Inc may face a cooler reception from investors than expected when it prices its initial public offering next month since smaller USA ride-hailing rival Lyft Inc's aggressive stock launch and subsequent fall. In the fourth quarter of 2018, Uber generated $2.54 billion in adjusted net revenue, with $2.31 billion of that coming from ridesharing. Both Lyft and Uber have been hit by accusations of underpaying and overworking their drivers, and have been the subject of protests in major cities. Its IPO could come as soon as early May.

Uber said in its filing it expects operating expenses to "increase significantly in the foreseeable future" and cautioned it "may not achieve profitability". The company did not disclose how much it is planning to raise, though it was last valued at $76 billion and there have been reports it could raise $100 billion.

More news: Lawyer Avenatti Charged in California With US Fraud, Tax Crimes

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..

Despite its ubiquitous presence around the world and its name being used as a verb by city dwellers, Uber says it has room to grow.

In a regulatory filing, Uber said it will list its shares on the New York Stock Exchange under the symbol "UBER".

In its federal filing, Uber warned of the fierce competition it faces on that front from rivals such as Tesla and Google's Waymo, who it said could introduce autonomous vehicles earlier than Uber. The company lost $4 billion in 2017. The company claims more than 65 percent market share in the United States and Canada, versus Lyft's stated 39 percent in the United States.

Uber said its growth strategy is based on increasing ride-sharing penetration in existing markets, pursuing targeted acquisitions and investments, and increasing investments in advanced technologies, among other things.

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