Uber eyeing a $10 billion IPO

Following Lyft (LYFT), global ride-hailing service provider Uber is set to go public in its first initial public offering with the SEC and expects to raise $10 billion from investors. The offering would the largest American IPO this year, and amongst the 10 largest of all time.

This will be the first time that Uber is releasing an exhaustive financial result to enable investors to look at the complete figures and compare them with Lyft’s who filed at IPO earlier this year.

The results reveal that Uber generated $50 billion in gross bookings last year, about 47% increase from last year. But the growth is slackening. Of the $11.4 billion of net revenue in 2018, only $3 billion came in the last three months of the year, up only 2% from the previous quarter. 

This will be major concern for the investors who would also be curious about where money is coming from for the company’s food delivery business. Another key point of inquiry would be whether Uber has saturated the U.S. market.

Other metrics along which Uber’s growth will be judged are its contributing margins and the number of active users. The latter is more complicated that the only the North American serving Lyft.

Last checked, Uber was valued at $76 billion and at the time its IPO was expected to raise $120 billion. Its losses for 2018 were $1.8 billion, down 15% from 2017. 

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