The American ride-hailing giant Uber has just filed its S-1 documents, paving the way for this company to go public in the next month. This revelation comes just after a month from Lyft’s IPO debut, which is the primary competitor of Uber in the North American market.
Uber has chosen the New York Stock Exchange bourse to list its shares, and it will trade its shares under the symbol “UBER”. The company is yet to reveal any information regarding the price of its shares. Although Uber did not disclose any information regarding its initial public offering price, rumors are rife that the company is looking to sell off $10 billion worth of stock from its shelves, which means that it is looking for a $90 to $100 billion valuation once its IPO follows suit.
In its recent financial statements for 2018, the ride-hailing giant reported net revenues of $11.27 billion, with net income of $997 million for 2018. The company reported Earnings before interest, tax, depreciation, and amortization (EBITDA) losses of $1.85 million.
From its ridesharing segment, the company’s revenues experienced an increase from $3.5 billion in the year 2016 to about $9.2 billion in the year 2018, which includes gross bookings of $41.5 billion last year just from ridesharing products.
Its competitor Lyft is also not doing well as it reported a loss of nearly $1 billion for the financial year of 2018. Lyft debuted in the NASDAQ stock exchange to much hype and fanfare, raising nearly $2.35 billion from its IPO debut. The company’s valuation also jumped to around $22.5 billion. This usher in good news for Uber, as it can expect the same around of positivity and hype around its shares, especially because it is a bigger company than Lyft.
Uber is currently heavily involved in developing a self-driving car which will be able to ferry its passengers from one place to another without the need for a human driver. Once Uber successfully manages to create an autonomous driving vehicle, it will be able to put its sole focus on the passengers and not have to worry about paying drivers, which means that its revenues will significantly increase in the future. The company is also experimenting with future technologies such as air taxis which could be able to enter the ride-hailing market within the next decade.
All these developments mean that the company will be quickly able to return to profits, which bodes well for its shareholders and the new investors that it will take on board in the coming months once its IPO successfully manages to go through without a hitch. Uber has also started expanding aggressively into new markets in Asia such as the Indian market where it commands a significant market share in the ride-hailing segment of that rapidly urbanizing country.