Uber IPO Filing Shows $10 Billion in Operating Losses Since 2016

Uber IPO Filing Shows $10 Billion in Operating Losses Since 2016

Uber IPO Filing Shows $10 Billion in Operating Losses Since 2016

The massive filing shows Uber has been generating the robust revenue growth that entices investors, but also racked up almost $8 billion in losses over its 10 years in existence, which mirrors the same trend challenging Lyft, Uber's main rival in the U.S. Its shares are set to begin trading next month under the "UBER" ticker symbol. Lyft launched its IPO with a valuation of $24 billion, but Uber is reportedly seeking a valuation of $120 billion.

Buzz over Uber planning to go public comes amid protests across the globe sparked by the company. 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's filing reveals that Uber had an average of 91 million monthly active users on its platform at the end of 2018.

Uber's valuation in its latest private investment round was more than $70 billion, but reports said the ride-hailing giant was likely to seek a market value of close to $100 billion.

The S-1 filing underscores Uber's rapid growth in the last three years but also how a string of public scandals and increased competition from rivals have weighed on its plans to attract and retain riders.

Uber is reserving some shares in the IPO for drivers who have completed 2,500 trips among other criteria.

Uber's global reach distinguishes it from rival Lyft Inc., which operates in the USA and Canada.

The move comes after a lackluster market debut for Uber's United States rival Lyft Inc, which has lost more than 10 percent of its value since its IPO last month. Uber's operating loss, for example, amounted to 27 percent of revenue in 2018, while Lyft's operating loss was 45 percent of revenue. It will no doubt take potential investors time to sift through all of Uber's information and finances.

"Uber accounts for less than one percent of all miles driven globally". Uber thinks dockless e-bikes and scooters could drastically reduce passenger vehicle trips under three miles, but also acknowledges that it wields little control over the complex supply chain associated with bikes and scooters.

But now many of those people stand to make millions - if not billions - of dollars as the company roars onto the stock exchange. Alphabet, the parent company of Google, owns 5% of the company. Khosrowshahi joined Uber in 2017 to replace company co-founder Travis Kalanick who was ousted as CEO.

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