Uber has recently announced that it is looking for a valuation of $90 billion in its upcoming, much anticipated stock market flotation.
In case you’ve been living under a rock, Uber is a “taxi” company, who also specialises in food delivery. It has been said that its shares will be priced at between $44 and $50 each, with the share issue expected to raise about $10 billion. As a part of the public offering, $500 million worth if shares will be going to PayPal. The IPO price values the company below the $100 billion some had expected it to aim for. Along side the food delivery, and taxi services, Uber is looking to roll out driverless cars sometime in the near future.
Alongside details of the Initial Public Offering, Uber also revealed its latest quarterly figures. These showed that its drivers made 1.5 billion passenger journeys during the first three months of 2019, but the company reported a net loss of about $1 billion. Uber also has openly stated that they may never turn a profit on their services.
The rival transport company Lyft recently started trading publicly. Since it’s original IPO, its share price has dropped and is now around 20% below the initial price paid by investors. Uber, which has been in business for 10 years, is selling 180 million shares in the offering, with a further 27 million sold by company insiders.
The company will spend the next 10 days marketing itself to investors, to drum up interest in order to try and avoid following the disappointing path set by rival company Lyft.
