Uber plans to kick off IPO

Cornelia Mascio
Marzo 16, 2019

To fight against losing more money, Lyft is said to be preparing a report that would hopefully convince investors that Lyft won't stay in the red zone for too long, while investors still holding interest in Lyft and Uber are focusing on the future potential of these companies. Lyft filed its own prospectus on March 1 and is expected to debut in the public stock market later this month. Uber declined to comment. Reuters said some analysts expect its market cap to be closer to $100 billion based on the company's recent financials.

Lyft, a smaller firm which has ride-hailing and bike-renting in the United States and several Canadian cities, is seeking a valuation of $US20 billion to $US25 billion, up from its $US15 billion valuation as a private company.

Softbank is already the largest investor in Uber, following a $US1.25 billion investment in January 2018 that gave it control of about 15% of the ride-hailing company. And a successful IPO for Lyft would allow Uber to benefit from market euphoria and also demand a high valuation.

After losing about $3.3 billion a year ago, Uber is hoping to bring a change in the automobile industry by introducing self-driven cars. But the company lost $US3.3 billion, excluding gains from the sale of its overseas business units in Russian Federation and Southeast Asia.

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 auto division.

Lyft's revenue for previous year was $US2.2 billion, with $US8.1 billion in gross ride bookings. Lyft lost $688.3 million in 2017 and $682.8 million in 2016.

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 auto division.

A group of investors led by SoftBank Group and Toyota Motor is in talks to invest $1 billion (roughly Rs. 70,00 crores) or more into Uber Technologies's self-driving vehicle unit, which would value the unit at $5 billion to $10 billion, said two people familiar with the talks.

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