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The carpool leader, Uber, is on the verge of stealing the thunder of his nearest competitor. Reuters reports that Uber is expected to file its S-1 document with the SEC in April, followed by a road show in front of major investors, which will set in motion its intention to debut in the public market. The filing follows an IPO of Silicon Valley's main rival, Lyft, which is expected to take place at the end of the month, offering investors the opportunity to spread wealth between the two companies.
Uber plots for IPO Upstage Lyft
Uber is expected to file its IPOs in April. | Source: Shutterstock
The public procurement race intensified after the two companies filed private pre-ICO documents with US regulators at the end of 2018. Uber is seeking a higher value between $ 100 billion and $ 120 billion. dollars, against 76 billion dollars. Lyft's value is expected to be in the range of $ 20 billion to $ 25 billion, up $ 10 billion from the high end of its current size.
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Neither company is profitable, however, with net losses of $ 3.3 billion in 2018 and $ 0.9 billion for Uber and Lyft, respectively. In terms of revenues, Uber generated $ 11.3 billion last year, against $ 2.2 billion for its smallest competitor. Meanwhile, Uber posted gross orders of $ 50 billion last year, against $ 8.1 billion for Lyft.
Lyft's net loss is the biggest gap ever recorded by a publicly traded company, reports Axios, evoking images of the collapse of the internet bubble, although many of these startups have achieved little or no sales.
Lyft-Uber IPO Race warms up
Uber has been better able to capitalize on the popularity of the entertainment industry by expanding its activities to services such as food delivery and even to a self-driving car company, which can receive a billion dollars from investors institutional investors, reports Reuters. Although the investment has not been made, this is something that stock market investors should take into account in light of the influence that potential lenders might have on the direction of business.
Nevertheless, Uber's diversified business model does not mean that it will be a slam dunk for investors. The company has had to seriously control the damage over the past two years after being involved in scandals that led to the resignation of its CEO, Travis Kalanick. Dara Khosrowshahi is currently at the helm, and the IPO's performance will be a referendum on her performance so far.
Lyft, meanwhile, is rather a pure game on the carpool niche, which could play in the investment strategy of some investors. Considering that their IPO will be the first, the company will likely benefit from investors' voracious appetite.
Overall, IPOs have been a starting point for investors in 2019, and Lyft and Uber's back-to-back deals may well be what it takes to kick-start the market. Other technological IPOs under development include the Slack, Pinterest and Palantir messaging platform.
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