Uber Technologies Inc has decided it will seek to sell around $10 billion worth of stock in its initial public offering (IPO), and will make public the registration of this offering on Thursday, people familiar with the matter said earlier this week.
But the prospectus renewed questions about how sustainable Uber's business actually is.
Uber is expected to fetch up to $10bn (£7.6bn) in the listing, which could reportedly occur in May and value the company at up to $120bn.
"The outlook for growth is weak and the outlook for profits potentially still weaker". In the United States, the company is burning cash as it battles Lyft, cutting prices for passengers and spending to recruit drivers. And the company is investing heavily in businesses such as food delivery and scooters.
"We will not shy away from making short-term financial sacrifices where we see clear long-term benefits", Uber CEO Dara Khosrowshahi wrote in a letter to investors.
Last year, the company brought in $2.6bn in the first quarter of the year, and $3bn in the final quarter, a much.
Good luck to potential investors in Uber's coming initial public offering. Morgan Stanley and Goldman Sachs Group Inc. are leading the offering. New York City taxi drivers experienced a major win in August 2018 when the city council said it would cap licensing new Uber and Lyft services for a year so the city could study ride-sharing services' effects on transportation.
In its filing, Uber said it made a profit of US$997 million in 2018, largely from selling parts of its business in places like Southeast Asia and Russian Federation. At the end of 2018, Uber Eats, its most talked-about business, had gross bookings of $2.6 billion.
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Revenue growth also slowed. It launched its first self-driving test vehicle in 2016 and its self-driving auto division has more than 1,000 employees, and it has built more than 250 self-driving cars so far. Uber revealed in the prospectus that it is heavily dependent on just five cities for almost a quarter of its total bookings: Los Angeles, New York, San Francisco, London and São Paulo.
Uber, which has previously made public some of its financial results, disclosed further details in its filing - including a net income of $997 million for 2018. This is up 33.8 percent from 2017, but growth slowed from 51 percent a year earlier.
At the same time, Uber's spending continues to rise, reaching US$14.3 billion previous year, up 19per cent from 2017.
Silicon Valley tech workers were quick to embrace Uber, but it wasn't until around 2013 that the service took off more broadly. "Uber has become a verb". And the company continues to deal with investigations by the Justice Department and foreign government agencies over its past business practices.
"They're showing that they're capable of controlling their costs, which has been a concern of ride sharing companies in general", said SharesPost analyst Alejandro Ortiz. The shares are down about 15 per cent from the eventual debut price of US$72.
Uber is a considerably larger business than Lyft, operating in countries across the globe including Brazil, Mexico and India, as well as the Middle East, where it recently acquired Careem..
Uber set a placeholder amount of $1 billion but did not specify the size of the IPO.
Uber has spent more than $1 billion on autonomous vehicle technology to compete with Alphabet Inc., Apple Inc. and General Motors Co.