Business Maverick: Uber Is Said to Seek About $10 Billion in Year’s Biggest IPO

The global ride-hailing company will kick off a road show this month and would begin trading publicly in May, said the people, who asked not to be identified because the information is private. Uber is seeking to raise about $10 billion, one of the people said.While Uber has released partial financial results for years, its IPO filing with the U.S. Securities and Exchange Commission will provide the first complete look at its numbers and operations.

“The main thing is going to be the ride-sharing metrics versus Lyft,” said Wedbush Securities analyst Dan Ives. “I think in the view of many investors Lyft is the little brother to Uber.” Uber said in February that it generated $50 billion in gross bookings last year, up about 45 percent from 2017. But the figures show slowing growth. Of the $11.4 billion of net revenue in 2018, only $3 billion came in the last three months of the year, up only 2 percent from the previous quarter. While that number gave the San Francisco-based company a year-over-year quarterly growth rate of 25 percent — high by most standards — it fell well short of the 38 percent rate for the third quarter.

Breaking out Uber’s U.S. ride-hailing business from its global operations will be a particular focus for those parsing its IPO to compare it to Lyft, which operates in the U.S. and Canada. A key point of inquiry will be whether Uber has already saturated the U.S. market. “I don’t know if they’re going to give us enough to get to that level of specificity but the U.S. is the oldest most mature market,” said Tom White, a senior analyst at DA Davidson & Co. “I think some investors think it has slowed significantly.”

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