Uber Unveils Its Highly Anticipated IPO Filing

Apr 13, 2019, 00:34
Uber Unveils Its Highly Anticipated IPO Filing

Lyft's stock closed down nearly 11 per cent on Wednesday and - even with a slight recovery Thursday - still trades below the low-end of an earlier IPO pricing range.

The ride-sharing company changed the USA transportation landscape after it was founded in 2009 but has faced many controversies, including a lawsuit related to alleged sexual assaults committed by fake Uber drivers and a late March strike by Los Angeles drivers angered by low pay. Polish taxi drivers held up traffic in Monday to call attention to their message that Uber drivers represent unfair competition, reported The Associated Press.

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. There are maps showing Uber's market share by country, a disclosure of tips paid to Uber drivers (a cumulative $1.2 billion) and a metric for Uber's "monthly active platform consumers", or the average number of people who take a vehicle ride, rent an Uber scooter or bicycle or get a meal delivered from Uber Eats at least once in a given month. Drivers for both companies complain about declining earnings, and they can easily switch between platforms, making it hard for either company to further reduce driver costs and keep fares cheap for passengers.

Uber will list on the New York Stock Exchange using the ticker symbol UBER. That compares to a net loss of $4.03 billion in 2017 on revenue of $7.9 billion, the filing shows.

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Uber revealed in the filing it could have to pay a license fee to Waymo or face a substantial delay to the development of its self-driving technology if the initial assessment of its technology by an independent expert is confirmed.

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.

The expert, installed as part of Uber's settlement with Waymo, has identified on an interim basis certain functions in Uber's autonomous vehicle software that "are problematic and other functions that are not", Uber said.

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.

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Uber's growth was slowed by a raft of scandals beginning in 2016 that ultimately led to the ouster of its CEO, Travis Kalanick.

One advantage Uber will likely seek to play up to investors is that it is the largest player in numerous markets in which it operates. Lyft's stock now is hovering around $61, down from its IPO price of $72. Analysts consider building scale crucial for Uber's business model to become profitable.

Uber CEO Dara Khosrowshahi acknowledged the self-inflicted wounds that damaged the ride-hailing service's reputation while trying to make the case that the company has rehabilitated itself since he took over 18 months ago.

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