Uber Files For 2019 IPO
Will Lyft or Uber win the race to IPO?
Only days after its competitor Lyft files for IPO, Uber has officially filed paperwork for its own IPO. The ride-hailing app had filed confidential paperwork on Thursday, said someone close to the company.
Uber and Lyft both carry out a similar service, with the main difference between the company’s being their respective sizes. Uber is looking to carry out its IPO before Lyft, to reassert its domination in the niche.
When the Uber IPO is confirmed, it will be one of the biggest tech listings in the markets history. Uber was last valued at $76 billion in a private financing event. With an Uber IPO, it is expected the company could be worth around $120 billion. Uber is one of many silicon valley companies to be looking at IPO, AirBnb and Slack are also looking at a 2019 IPO.
As of now, the most popular way to invest in Uber stock is by investing in private equity funds and venture capital funds. The Uber and Lyft IPO’s will indicate investors affinity to the ride-hailing market, which is still relatively new (10 years old). Despite the ride-hailing business being vastly popular, it is also unprofitable at times, making it a tough buy for investors.
In Q3 alone, Uber made a loss of $1.07 billion and has a problem with growth stagnation. Uber had bookings gross of $12.7 billion in Q3, which highlights the scale and reach of the company. Uber has Q3 revenue of $2.95 billion, representing a 5% increase from Q2.
Since 2010, Uber has raised nearly $18 billion from a multitude of investors, it now faces increased pressure to go public. Softbank bought a 15 percent stake in Uber back in January. One of the requests Softbank made was that Uber file for an IPO by September 30 of 2019. This is likely what caused an Uber IPO to be filed.
As of now, there is not an official underwriter for the Uber IPO, but Goldman Sachs and Morgan Stanley are the most likely candidates.