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Uber's IPO: What You Need to Know



3 min read

The ride-share company Uber filed its paperwork for an initial public offer in the spring, perhaps already in late April, according to sources.

The company, which allows customers to take a trip using an app that matches consumers with nearby drivers, is the dominant player in the Riding Sharing industry with about 70% of the market. It hopes to increase 10 billion. Dollars going public – which potentially makes it one of the year's biggest stock market listings, reports reported.

Uber is also looking for a $ 1

00 billion valuation, approx. Four times as high as its competitor Lyft, which became public on March 29, 2019. Its inventory may vary between $ 54 and $ 58 when it begins to sell, experts say.

Here are some more highlights from Uber's IPO paperwork:

  • Uber reported revenue of 11 billion. US $ 2018, up more than 40% over 2017.
  • Uber lost $ 1.8 billion in 2018 and has reported operational losses of over $ 13 billion since 2015.
  • Uber claims to carry out 14 million rides a day in more than 700 cities around the world.
  • Uber drivers have made more than 10 billion car trips since the company was launched in 2012.

Lots of questions

  • In Uber's prospectus – the paperwork filed by a company with the Securities and Exchange Commission SEC) before The IPO Company lists in its summary of risk factors that the cost of operations is expected to increase significantly in the future and that the company can never achieve profitability.
  • Uber can praise its shares at the low end of the spectrum, according to some analysts,

More about IPOs

After an IPO, a new stock may be subject to significant increases or decreases in market prices. It is known as volatility. Stock volatility can be particularly high in the first few months following a stock exchange listing, and thus the potential for short-term losses. However, if you are in this warehouse for the long haul, it may be an opportunity for dollar costs.

Often, price fluctuations are due to the expiration of something called a lockout period – that is when the company's insiders, such as employees, sign an agreement that prohibits them from selling shares for a certain period. (According to Uber's Prospectus, the company's lockout period is 180 days.)

When the lockout period expires, insiders have a tendency to sell their shares to realize profits, sometimes causing the stock price to fall or experience major price changes in the process. You can find out more about the lock period and other information about Uber by looking at the prospectus, a publicly available document on the Securities and Exchange Commission website EDGAR.

Remember the long-term Stash Way investment, invest regularly, and don't put all your eggs in a basket.

More about Uber

Uber, founded by Travis Kalanick and Garrett Camp in 2009. It started as UberCab in San Francisco and moved so quickly to other cities and countries that release "Cab" from its name along the way.

Over the years, the company has raised more than $ 24 billion in 22 rounds of venture capitalists.

According to Uber's prospectus, the company has expanded beyond ridesharing to develop additional companies within bicycle sharing, scooter sharing and meal delivery.

Uber's growth has often been controversial, with problems related to background checks for his drivers and pushbacks from urban areas worried that Uber could destroy the traditional taxi and black car dealerships in those locations.

There have also been great questions about whether Uber promotes a culture of sexual harassment against women, according to reports.

Kalanick was forced to step down from the company in 2017. Dara Khosrowshahi replaced him as CEO.

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Jeremy Quittner
Jeremy Quittner is senior writer for Stash.


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