Ride-hailing giant Uber files for United States initial public offering

Ride-hailing giant Uber files for United States initial public offering

Ride-hailing giant Uber files for United States initial public offering

The San Francisco-based company applied to list on the New York Stock Exchange under the ticker UBER, according to its filing Thursday with the U.S. Securities and Exchange Commission.

The move comes after a lackluster market debut for Uber's U.S. rival Lyft, which has lost more than 10 percent of its value since its IPO last month. "However, once Uber goes public (expected in the mid-April timeframe), we could see outflows as investors seek to invest in Uber".

Uber a year ago had revenue of $11.3 billion, while gross bookings from rides was $50 billion. 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. Short interest in the stock now stands at almost 43 percent of free float, according to financial analytics firm S3 Partners, and last week IHS Markit said it was the most expensive bearish bet in the USA equity market.

Uber's filing follows rival Lyft Inc.'s US$2.34 billion IPO in March, which is the biggest U.S. IPO so far this year. But its 2018 operating loss was just over $3 billion, down from the $4 billion net loss it incurred in 2017.

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The world's largest taxi-hailing company revealed that it made a $3 billion operating loss a year ago as it published the prospectus for its initial public offering (IPO).

Uber has expanded to include services like Uber Eats, a food delivery platform, and Uber Freight, which creates an on-demand marketplace for shippers and carriers.

Aside from its flagship ride-sharing app, the company operates a food delivery service called "UberEats", which earned $1.5 billion in revenue past year, and a shipment fulfillment segment called "Uber Freight". Its IPO could come as soon as early May. It has, however, struggled to stem its billions of dollars of losses and has been forced to exit some markets, caving to competition from local rivals. Khosrowshahi joined Uber in 2017 from Expedia Inc to replace company co-founder Travis Kalanick who was ousted as CEO. The company is also considered a forerunner in ongoing efforts by tech leaders to develop autonomous vehicle technology, though Uber suffered a significant setback previous year when one of its vehicles fatally struck a pedestrian in Arizona. The company also warned that potential future regulations or increases in insurance costs could impact the autonomous vehicle business. Alphabet also owns roughly 5% of Lyft's stock.

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