Economy

Uber filing offers glimpse under its hood ahead of IPO

Uber filing offers glimpse under its hood ahead of IPO

Its history that is unprofitable could induce its prices that are ride-hailing to be finally raised by Uber unless it expand to other markets and lines of business or could reduce its costs by shifting to cars.

"Our continued success will come from stellar execution and the strength of the platform we have worked so hard to build", said CEO Dara Khosrowshahi in a letter in the filing. The ride-hailing service filed its S-1 forms on Friday, April 12, and it will trade on the New York Stock Exchange under the ticker symbol "UBER". 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.

The number of customers per month who use Uber not only for travel but also for services such as food delivery, amounted to 91 million in 2018, which is 34% more than a year earlier. The company reported $8.1 billion in bookings over the course of 2018.

Uber's ride-hailing business, which is its primary calling card, generated $9.2 billion in revenue in 2018, with gross bookings of $41.5 billion over the course of the year, according to the filings.

Uber's sensitivity to regulation, as it prepares to go public later this year, highlights the tension between mobility companies that rely on big cities to power their businesses and elected officials in progressive meccas seeking to maintain more control over the rapidly changing transportation landscape.

The big picture: Early estimates suggest Uber could be prepared to raise as much as $10 billion. And it's likely to be the largest among US tech companies since Facebook took its bow on Wall Street seven years ago at a time when most people hadn't ever considered using an app on their smartphone to summon a ride from strangers driving their own cars.

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Uber is also expanding in other markets such as freight while offering other ways to get around with shared scooters and bikes.

Uber launched as a vehicle service where customers are able to hail drivers with a couple taps on a smartphone as UberCab, in 2009. Its title shortened from 2010, distancing itself from the taxicab business, which has been criticized the firm for operating under less regulation than the traditional cab market. In it, the company disclosed just how reliant its food delivery arm, Uber Eats, is on chain restaurant partnerships to survive.

But Uber faces challenges that Lyft doesn't because of a series of revelations that sullied its reputation.

In its filing, Uber said it made a profit of US$997 million a year ago, largely from selling parts of its business in places like South-east Asia and Russian Federation. The setbacks have included rampant internal sexual harassment and allegations it stole self-driving auto technology.

The blowback in the problems assisted Lyft pickup soil in the US and contributed to the ouster of both Uber co-founder Travis Kalanick CEO in 2017.

The decade-old company also warned that it may fail to develop and successfully commercialise autonomous vehicle technologies and expected that its competitors would develop such technologies before it.