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

Ann Santiago
April 14, 2019

Reuters reported this week that Uber plans to sell around $10 billion worth of stock at a valuation of between $90 billion and $100 billion. That would make it the largest IPO since Alibaba Group went public in 2014 with a staring valuation of $169 billion.

Uber will follow Lyft in going public. Shares in its smaller rival closed at $61.01 on Thursday, 15 percent below its IPO price set late last month, a development which has had chilling signal for other tech start-ups looking to go public.

The company's filings also revealed that it made a loss of $1.8 billion a year ago on a revenue of $11.3 billion. The company hasn't yet disclosed the number of shares it will offer or its intended price range.

The breakdown shows Uber has been generating the robust revenue growth that entices investors, but also racked up almost $8 billion in losses since its inception.

Under the leadership of Kalanick, who was chief executive, Uber also increased its footprint internationally. Pinterest also lost $62.97 million in 2018.

Uber, which was founded in 2009, has completed a total of over 10 billion rides and has expanded to more than 700 cities in over 60 countries.

Despite its ubiquitous presence around the world and its name being used as a verb by city dwellers, Uber says it has room to grow. At the end of 2018, Uber Eats, its most talked-about business, had gross bookings of $2.6 billion. Uber had been faulted for a culture of workplace sexual harassment, programmes to evade regulators and a viral video of Kalanick lambasting a driver as the company faced mounting pressure of treatment of its contract workforce. Uber declined to comment for the report which cited unnamed people familiar with the matter.

Stateside, the aforementioned Los Angeles strike had participants who drive for both Lyft and Uber.

The blowback from the problems helped Lyft pick up ground in the US - something Uber acknowledged in its filing - and led to the ouster of Uber co-founder Travis Kalanick as CEO in 2017.

"With Uber, investors will soon have a second option to make a bet on the future of mobility and transportation with the clear market share leader, while competitor focus will likely also zero in on Waymo/Google and even the traditional auto sector which is investing in autonomous vehicles in its own right", the firm added.

Uber said in its filing its ridehailing position in the United States and Canada was "significantly impacted by adverse publicity events" and that its position in many markets has been threatened by discounts from other ride-hailing companies. It sound nice, but investors should ask hard questions about how much of Uber's expertise in signing up ersatz taxi drivers is useful for reaching deals with restaurants to deliver burritos, or big companies that want to ship potato chips to grocery stores.

Other reports by

Discuss This Article