Uber Plans to Go an IPO
Uber taxi service intends to launch an IPO, during which it is planned to sell shares worth $10 billion. Company shares will be available for trading under the symbol UBER next month on the New York Stock Exchange. If successful, Uber’s valuation could grow to $ 100 billion, which will strengthen its position in the market. But immediately after submitting an application for an IPO, many people had questions about how stable the Uber business is. According to the information provided in the application, the company's revenue growth began to slow down. One of the potentially serious problems for Uber is that in the near future the company will continue to conduct unprofitable activities. In the United States, the company spends huge sums on a fight with a competitor company, Lyft, by reducing the cost of travel for passengers and a regular staff of drivers. On other continents, the situation is not very different: Uber also provides discounts to customers and incentives for drivers, since it has serious competitors in the sector. In addition, the company invests large sums in such enterprises as food delivery and scooters.
“We will not shy away from making short-term financial sacrifices where we see clear long-term benefits”, Dara Khosrowshahi, Uber CEO, states in the application.In order to attract attention to the company, Uber published its quarterly results for two years, although, being a private company, it was not obliged to do so. Uber said it made a profit of $ 997 million in 2018, mainly from the sale of part of its business in Southeast Asia and Russia. Excluding this profit, losses amounted to $ 1.8 billion for 2018, and in 2017, the company's net loss was $ 4 billion. Revenue growth has also slowed. In 2018, revenue grew by 42% to $ 11.3 billion compared with this figure a year earlier. But in 2017, it has more than doubled compared to 2016. According to the information provided by Uber, a quarter of all orders falls on Los Angeles, New York, Sao Francisco, London, and Sao Paulo, as well as Brazil. 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. But this figure is lower than in comparison with 2017 - 51%. At the same time, Uber costs continue to grow, with a figure of $ 14.3 billion last year, which is 19% more than in 2017. While revenue growth in the taxi business has slowed, its Uber Eats food delivery service is growing rapidly. It is worth noting that Uber Eats revenue tripled, reaching about $ 1.5 billion in 2018, compared with $ 587 million a year earlier. We want to remind you: https://thecoinshark.net/what-would-happen-if-uber-functioned-on-blockchain/ Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/