This is how Uber IPO will make directors uber-rich

This is how Uber IPO will make directors uber-rich

How big will Uber's IPO be?

Uber said in its filing that it expected operating expenses to "increase significantly in the foreseeable future" and cautioned it "may not achieve profitability".

A key question facing Uber now is if it wants to keep pouring funds into its unprofitable ride-hailing business or redirect the tons of cash from its IPO into more profitable ventures such as Uber Eats food delivery startup.

Uber said its growth strategy is based on increasing ride-sharing penetration in existing markets, pursuing targeted acquisitions and investments, and increasing investments in advanced technologies, among other things. But its 2018 operating loss was just over $3 billion, down from the $4 billion net loss it incurred in 2017.

Uber plans to sell around $US10 billion worth of stock at a valuation of between $US90 billion and $100 billion. The registration will provide investors with their most complete look yet at Uber's financial and operational numbers and strong points of comparison to rival Lyft's IPO registration in March.

Uber has finally let us peek inside its business. It posted revenues of $11.27 million in 2017 according to the filing.

"Uber accounts for less than one percent of all miles driven globally". Uber revealed in the prospectus that it is heavily dependent on just five cities for almost a quarter of its total bookings: Los Angeles, New York, San Francisco, London and São Paulo. I'm not sure I've ever read a more sprawling IPO document, which reflects Uber's sprawl.

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The biggest winners from Uber's public offering will be its founders and early investors, who own large chunks of company stock. Analysts consider building scale crucial for Uber's business model to become profitable.

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.

- Travis Kalanick, Uber's founder, owns 8.6%.

It now operates in more than 63 countries and 700 cities around the world.

Uber and Lyft signs are seen on a vehicle in Redondo Beach, California, U.S., March 25, 2019.

The Wall Street Journal has reached out to both Uber and Lyft regarding their insurance plans; Uber's spokesperson declined to comment beyond what was explained in their regulatory filings, while Lyft's representative also declined to comment.

Uber has 65 percent share in North America while Lyft says it has 39 percent in the United States.

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