Uber races towards IPO as competition with rival Lyft picks up pace

Marcus Newton
December 11, 2018

Ride-hailing company Uber Technologies Inc filed paperwork confidentially this week for an initial public offering next year, three people familiar with the matter said on Friday, setting the stage for what would be one of the biggest listings ever.

However, its smaller U.S. rival, Lyft Inc. had also announced an IPO filing at the same day.

Uber has already told in the recent press conference that if the company goes public, then they're expecting a market valuation of more than 120 billion dollars.

An IPO is inevitable for Uber, with CEO Dara Khosrowshahi previously stating that the company has all the disadvantages of being public with none of the advantages. Khosrowshahi took over more just than a year ago.

Founded in 2009 by Travis Kalanick, Uber has raised nearly $20 billion from investors such as Japan's SoftBank and Toyota. Its revenue also increased by 5% to reach $2.95, while the booking grew by 6% during the quarter. She continues to assist in keeping the site responsive and well organized for the readers.

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Khosrowshahi and his leadership team have worked to reset the workplace culture and clean up the messes, including settlements with USA states over the data breach and with Alphabet's self-driving auto unit, Waymo, which had sued Uber for trade-secrets theft. Unlike Lyft, the larger of the two ride-hailing competitors didn't announce the move.

The company was valued close to $72 Billion in its last capital raising event.

Still, Uber operates in more than 70 countries, while Lyft is in the US and Canada, although the smaller company is plotting a global expansion. Those include freight hauling, food delivery and electric bike and scooter rentals. But, it will be interesting to see how the investors are going to value the company by considering its prospect. According to the report, Uber may beat Lyft to the market and debut in the first few months of 2019.

According to the WSJ's report, Uber might go public "as soon as the first quarter", and it is calling the planning "Project Liberty". The market of ride sharing seems to be permeable, says Jeff Zell, the senior analyst & partner of IPO Boutique, Florida. That company offers like Uber through an app and taxi services by self-employed drivers to be performed. Instead it may now plan to go public well before its rival Lyft does.

Other reports by MaliBehiribAe

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