Uber reveals strong growth, huge losses ahead of IPO

Uber narrows losses growth slows on the road to IPO

Uber narrows losses growth slows on the road to IPO

Even though the ridesharing giant is said to be among 10 top IPOs of all times, on the list with companies such as Facebook and Alibaba, many investors are arguing that Uber's estimate might be underpriced by 20 billion dollars or so.

In its initial public offering filing on Thursday, Uber revealed that Japan's SoftBank Group Corp. -controlled SoftBank Vision Fund was its largest shareholder with a 16 percent stake. But user growth, which had risen 51 per cent in 2017, also slowed.

Uber was previously estimated at 120 billion dollars, however, the company appears to be undershooting, trying to avoid a case scenario where the price of shares would drop after the initial sale, which is why instead of going for estimates at 120 billion dollars, equal 11 times Uber's reported revenue from 2018, the company will more likely go with 100 billion dollars, 9 times Uber's revenue reported in 2018.

This season, the investment bankers managing the IPO of Uber are expected to reveal a pricing array for the stocks of Uber. Alphabet also owns approximately 5% of Uber rival Lyft's inventory. Incidentally, the IPO filings show the United States department of justice is investigating potential improper payments to police by Uber in multiple markets including India. While the gap between India and other markets is significant, Uber did not give country-wise breakup in continents like Europe or Africa.

According to market sources, the company may provide a price range for its shares later this month and would go public in May.

After making the public filing, Uber will begin a series of investor presentations, called a roadshow, which Reuters has reported will start the week of April 29. 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.

Waymo, in its lawsuit, had said one of its former engineers who became chief of Uber's self-driving auto project took with him thousands of confidential documents.

Uber said it made a profit of $ 997 million in 2018, mainly from the sale of part of its business in Southeast Asia and Russian Federation.

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.

Uber highlighted Seattle's landmark law that allows drivers to unionize as an example of legislation that could force the company to "modify our business model in those jurisdictions as a result".

Travis Kalanick, the former CEO who stepped under stress in 2017 in the board, is one of Uber's biggest shareholders, owning nearly 9% of the company's stock.

It's hard to what, if any, change Uber's IPO will have on riders.

Uber Eats' take rate - or adjusted net revenue per order - was 4 percent in 2016, according to company financials.

Uber said its market share fell in most regions a year ago, although the rate of decline has slowed.

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