Uber IPO: What You Need to Know

According to sources, the Uber co-ownership company has filed its documents for its IPO this spring, possibly as early as late April.

The company, which allows customers to get to work using an app that matches consumers to nearby drivers, is the dominant player in the carpool industry with about 70% of the market. He hopes to raise $ 10 billion by becoming public, which could make it one of the largest IPOs of the year, according to reports.

Uber is also seeking a valuation of $ 100 billion, about four times that of its rival Lyft, which was made public on March 29, 2019. Its stock could be between $ 54 and $ 58 when it starts trading. sell, according to experts.

Here are some other highlights of Uber's IPO documents:

• Uber said a turnover of $ 11 billion for 2018, an increase of more than 40% over 2017.
• Uber has lost $ 1.8 billion in 2018 and operating losses of more than $ 13 billion since 2015.
• Uber claims to perform 14 million rides per day in more than 700 cities worldwide.

• Uber drivers have made more than 10 billion car trips since the company 's launch in 2012.

A lot of questions

• In the Uber Prospectus – documents that a company filed with the Securities and Exchange Commission (SEC) prior to its IPO – the company indicated in its summary of the risk factors that its expenses were $ 30,000. would increase significantly in the future and that may never achieve profitability.
• Uber could set the price of its shares at the low end, according to some analysts,

Learn more about IPOs

Following an IPO, a new stock may be subject to significant price increases or decreases in the market price. This is what is called volatility. Equity volatility can be particularly high in the first few months after an IPO and hence the potential for short-term losses. If you are in this long term stock however, this could be an opportunity to average dollar costs.

Often, price fluctuations are due to the expiration of what is known as a lock-in period: it is at this point that insiders of the company, such as employees, sign an agreement that prohibits them from sell shares during a given period. (According to Uber's prospectus, the company's lock-up period is 180 days.)

At the end of lock-up periods, insiders tend to sell their shares in order to make a profit, sometimes resulting in a fall in stock prices or significant price changes. For more information on the lock-up period and other information about Uber, see its prospectus, a publicly available document on the Securities and Exchange Commission's EDGAR website.

Do not forget the Stash method – invest for the long term, invest regularly and do not put all your eggs in one basket.

Learn more about Uber

Uber was founded by Travis Kalanick and Garrett Camp in 2009. It started under the name of UberCab in San Francisco, and then quickly moved to other cities and countries, thus removing the name "Cab".

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

According to Uber's prospectus, the company has expanded beyond carpooling to develop additional activities in bike sharing, scooter sharing and meal delivery.

Uber's growth has often been controversial, with problems with background checks from its drivers, and metropolitan areas worried that Uber may be destroying traditional taxi and black car companies in those areas.

According to reports, there were also major questions about whether Uber promoted a culture of sexual harassment against women.

Kalanick was forced to leave the company in 2017. Dara Khosrowshahi replaced him at the head of the board of directors.