Uber plans to kick off IPO in April

17 March, 2019, 01:32 | Author: Eric Barnett
  • SoftBank, Toyota in talks to invest $1B in Uber's self-driving unit: Report

Uber is planning to file its S-1 prospectus with the Securities and Exchange Commission in April and begin its investor roadshow shortly thereafter, Reuters said, citing unnamed people familiar with the matter.

This would mean that SoftBank, which already owns 14 percent of Uber by way of venture capitalism over the years, would take on a minority stake along with an unnamed carmaker in Uber's self-driving unit. Both companies posted losses in 2018.

Finance and technology enthusiasts will finally get to witness one of Silicon Valley's most highly anticipated initial public offerings as early as next month when ride-hailing platform Uber finally goes public. Reuters said some analysts expect its market cap to be closer to $100 billion based on the company's recent financials.

Lyft seeks a valuation of United States dollars 20 to 25 billion, having been valued at USD 15 billion as a private company.

Being ahead of its larger rival allows Lyft to take advantage of pent-up investor demand for high-growth tech companies, rather than ceding available investor capital to Uber.

SoftBank is already a major investor in Uber after it acquired about 17.5 percent of the ride-hailing firm's stock previous year at a significant discount. But the company lost $US3.3 billion, excluding gains from the sale of its overseas business units in Russian Federation and Southeast Asia. We can expect to learn things like Uber's full 2018 financial performance and just how much money the company has been losing.


Lyft's revenue for previous year was $US2.2 billion, with $US8.1 billion in gross ride bookings.

The investment by SoftBank and Toyota can also help the ride providing firm in establishing its value as it prepares to enter the stock market.

SoftBank Group Corp and Toyota Motor Corp are said to be in a discussion of investing $1 billion or more into the self-driving unit of Uber Technologies Inc., raising the value of the unit to $10 billion from $5 billion.

Dara Khosrowshahi, chief executive officer of Uber, has previously said a culture change is a work in progress. Taking on large investors that will influence a key business is an unusual move for a company so close to an IPO.

Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.

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