Uber Planning IPO In April

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Exclusive: Uber plans to kick off IPO in April – sources

(Reuters) – Ride-hailing company Uber Technologies Inc is planning to kick off its initial public offering in April, putting it close on the heels of smaller rival Lyft Inc, people familiar with the matter said on Thursday.

Next month, Uber will issue its required public disclosure, known as an S-1, and launch its investor roadshow, the people said. Those events will set in motion the Wall Street debut of one of Silicon Valley’s most closely watched companies.

The timing for Uber’s IPO means it will most likely hit public markets soon after Lyft completes its own public offering, which is expected to happen by the end of March, people familiar with the matter said. Uber declined to comment.

The neck-and-neck race extends a long-held rivalry between the two loss-making companies, which have battled each other for riders and drivers since their inception.

Uber’s business is much larger and more diverse than Lyft’s, and the company has moved relatively swiftly to go public given both firms filed confidential paperwork for an IPO at the same time in December.

Uber, a global logistics and transportation company most recently valued at $76 billion in the private market, is seeking a valuation as high as $120 billion, although some analysts have pegged its value closer to $100 billion based on selected financial figures it has disclosed.

Lyft, a smaller firm which has ride-hailing and bike-renting in the United States and several Canadian cities, is seeking a valuation of $20 billion to $25 billion, up from its $15 billion valuation as a private company.

The two companies are positioned to kick off a string of hotly anticipated public debuts from highly valued tech companies, energizing the IPO market after a quiet start to the year.

Both companies stand to benefit from Lyft joining the public markets first.

Being ahead of its larger rival allows Lyft to take advantage of pent-up investor demand for high-growth tech companies, rather than ceding available investor capital to Uber. And a successful IPO for Lyft would allow Uber to benefit from market euphoria and also demand a high valuation.

Uber’s revenue last year was $11.3 billion, while its gross bookings from rides were $50 billion. But the company lost $3.3 billion, excluding gains from the sale of its overseas business units in Russia and Southeast Asia.

Lyft’s revenue for last year was $2.2 billion, with $8.1 billion in gross ride bookings. The company lost $911 million.

Uber will have the challenge of explaining and selling to investors a business that is more complex and less focused than Lyft’s.

Uber’s business operates in more than 70 countries and includes not only ride-hailing but also bike- and scooter-rentals, freight hauling, food delivery and an expensive self-driving car division.

SoftBank’s Vision Fund and Toyota Motor Corp are part of a consortium of investors in talks to invest $1 billion in Uber’s self-driving car unit, Reuters reported on Wednesday. Taking on large investors that will influence a key business is an unusual move for a company so close to an IPO.

Uber Chief Executive Officer Dara Khosrowshahi will be tasked with convincing investors that he has successfully changed the company’s culture and business practices after a series of embarrassing scandals over the last two years.

Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.

Reporting by Carl O’Donnell in New York and Heather Somerville in San Francisco; additional reporting by Greg Roumeliotis in New York; Editing by Meredith Mazzilli

Uber set to kick off its IPO in April

Lyft will go first

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Ride-hailing company Uber Technologies is planning to kick off its initial public offering in April, putting it close on the heels of smaller rival Lyft, people familiar with the matter said on Thursday.

Next month, Uber will issue its required public disclosure, known as an S-1, and launch its investor roadshow, the people said. Those events will set in motion the Wall Street debut of one of Silicon Valley’s most closely watched companies.

The timing for Uber’s IPO means it will most likely hit public markets soon after Lyft completes its own public offering, which is expected to happen by the end of March, people familiar with the matter said. Uber declined to comment.

The neck-and-neck race extends a long-held rivalry between the two money-losing companies, which have battled each other for riders and drivers since their inception.

Uber’s business is much larger and more diverse than Lyft’s, and the company has moved relatively swiftly to go public given both firms filed confidential paperwork for an IPO at the same time in December.

Uber, a global logistics and transportation company most recently valued at $76 billion in the private market, is seeking a valuation as high as $120 billion, although some analysts have pegged its value closer to $100 billion based on selected financial figures it has disclosed.

Lyft, a smaller firm which has ride-hailing and bike-renting in the United States and several Canadian cities, is seeking a valuation of $20 billion to $25 billion, up from its $15 billion valuation as a private company.

The two companies are positioned to kick off a string of hotly anticipated public debuts from highly valued tech companies, energizing the IPO market after a quiet start to the year.

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Both companies stand to benefit from Lyft joining the public markets first.

Being ahead of its larger rival allows Lyft to take advantage of pent-up investor demand for high-growth tech companies, rather than ceding available investor capital to Uber. And a successful IPO for Lyft would allow Uber to benefit from market euphoria and also demand a high valuation.

Uber’s revenue last year was $11.3 billion, while its gross bookings from rides were $50 billion. But the company lost $3.3 billion, excluding gains from the sale of its overseas business units in Russia and Southeast Asia.

Lyft’s revenue for last year was $2.2 billion, with $8.1 billion in gross ride bookings. The company lost $911 million.

Uber will have the challenge of explaining and selling to investors a business that is more complex and less focused than Lyft’s.

Uber’s business operates in more than 70 countries and includes not only ride-hailing but also bike- and scooter-rentals, freight hauling, food delivery and an expensive self-driving car division.

SoftBank’s Vision Fund and Toyota Motor Corp are part of a consortium of investors in talks to invest $1 billion in Uber’s self-driving car unit, Reuters reported on Wednesday. Taking on large investors that will influence a key business is an unusual move for a company so close to an IPO.

Uber Chief Executive Officer Dara Khosrowshahi will be tasked with convincing investors that he has successfully changed the company’s culture and business practices after a series of embarrassing scandals over the last two years.

Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.

Uber Planning IPO In April?

Uber, the ride-hailing app, is planning to float on the stock market in April. According to reports from the Reuters news agency, the company will register with US regulator the SEC. It is also planning a roadshow for investors in April.

This is the second company in the same industry to float stocks on the market since the beginning of 2020. Lyft started the process at the beginning of March and it is expected that it will complete the process by the end of the month.

Both companies had already announced their intentions in 2020.

Uber’s Valuation

Uber started in 2009 and was valued at $79 billion. It is hoping that it will be valued at $120 billion when it floats. However, the ride-hailing company has struggled to keep news positive about its brand. It has been a controversial entrant and has been blamed in more than sixty countries for disrupting the more traditional taxi industry.

Regulators in many countries are continuing to make operations for the company difficult. Private hire operators are also fighting back against the company.

There has also been some controversy over the way drivers are classified by the company. In the US and UK, the company has faced legal challenges after claiming its drivers are self-employed contractors instead of employees.

There have also been significant problems behind the scenes. Their chief executive, Travis Kalanick, was forced to resign in 2020 after a number of scandals within the organisation.

The company also had a data breach which affected 57 million riders and drivers. Some have suggested that the company paid the criminals to delete the information, but there is limited evidence that the data was destroyed.

In addition, Uber’s latest financial report shows they made a whopping $1.8 billion, even after tax benefits.

Uber’s Loss Is Lyft’s Gain

These have helped Lyft to raise its profile in the US and Canada, its only places of operation. The problem for the company is that its valuation is well below that of Uber, being only $15 billion. In addition, recent financial figures released have had stock market experts worried about their performance.

Some say that while revenue per ride is increasing, so are their costs per ride.

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