Uber and Lyft both prepare IPO
Uber as well as rival Lyft are preparing to go public. The first is planning to do this fairly soon and be first on the stock market in the first quarter of next year, while Lyft is aiming for the second quarter.
It was in the Wall Street Journal that the rumours were confirmed. This Initial Public Offering (IPO) of Uber would already take place in the first quarter of 2019, earlier than CEO, Dara Khosrowshahi, has predicted when he became number one in August 2017.
Biggest technology introduction ever
Already half October, the Wall Street Journal had communicated that the two trade banks, Goldman Sachs and Morgan Stanley, were asked to be counseling this introduction. They both have made valorization offers where the most optimistic proposed 120 billion dollar as stock capitalisation.
With 100 billion dollar or more, the San Francisco-based group would be the biggest introduction on the public market for a technology company ever, Uber being worth as much as General Motors, Ford and FCA (the three American car manufacturers) together.
Such an IPO would be the final sign of trust in Dara Khosrowshahi, the successor of the contested founder of Uber, Travis Kalanick, ousted by a large group of investors because of the scandals he initiated regarding Uber. The new CEO wants to restore the good image of his company and stop Uber losing money. The latter seems rather difficult, as it has once again lost more than a billion dollar in the third quarter of this year.
Nevertheless, investors stay confident because activities are booming: the turnover for the 3rd quarter was 2,952 billion dollar, 5,4% more than the quarter before, and 38% more than a year ago. In general, the sector is attracting investments that could reach 285 billion dollar in 2030, according to a study of Goldman Sachs. The fact that Uber is also betting on the autonomous car increases the interest of investors.
Direct rival, Lyft, announced its IPO officially a day earlier but seems not to be in such a hurry as Uber. Sources in the upper regions of the company suggest that the platform will try to go public in the second quarter of next year and that it will proceed carefully. “More information will be given when necessary”, commented an insider.