Uber aims at $91,5 billion for its stock-market launch
American ride-hailing company, Uber, wants to sell 180 million shares at $44 to $50, valuing the company in total at some 80,5 to 91,5 billion dollar at its stock-market launch in May.
That’s far from the 120 billion that was presumed first by Morgan Stanley and Goldman Sachs, but still one of the highest IPOs (Initial Public Offering) for an American company after Facebook.
Investors might be ensured by the intention of electronic payment platform, PayPal, where Elon Musk made part of his fortune, to buy 500 million dollar worth of shares, apart from the stock exchange. Both companies already work together quite closely and are thinking about developing a ‘digital wallet’ together. Uber has its own ‘Uber Cash’ system.
Like Lyft, which saw its IPO less glorious than hoped, Uber is a ‘risky business’, piling up losses so far. And it admits even not to be entirely sure it will ever make profit, as seen in its own prospectus. First priority now is growth, as there are rivals in the field on various domains Uber is active in.
1,9 billion dollar loss
In 2018, Uber took a gross loss (EBITDA) of 1,9 billion dollar. But it was 30% less than in 2017 and overall return grew with 42% compared to that year. The money it will get from its IPO, 7,9 to 9 billion dollar, Uber will invest in growing further.
Core business remains the ride-hailing and taxi app, but there is also Uber Eats to deliver restaurant meals at home and shared e-scooters, like it introduced in Madrid and the e-bikes JUMP, like introduced last week in Brussels.
Uber Freight will be launched in the Netherlands first in Europe. Just like the taxi service system, companies can connect with truck drivers through an app. Not to forget the Uber autonomous taxi it is working on. It just got a billion dollar private investment from Toyota, Denso and Softbank to get its robotaxis out on the street.
Time is running out, as the ones of rival Waymo, Google’s self-driving car daughter, are already roaming the streets since December 2018.