Ride-hailing services Uber and Lyft preparing to become public companies

Ride-hailing services Uber and Lyft preparing to become public companies

An IPO is inevitable for Uber, with CEO Dara Khosrowshahi previously stating that the company has all the disadvantages of being public with none of the advantages. On the other hand Uber's rival, Lyft has been in planning to go for the public in the next year also, but it seems like Uber is trying to steal the thunder of Lyft.

In the third quarter this year, Uber lost US$1.07 billion and is struggling with slowing growth, although its gross bookings, at US$12.7 billion, reflect the company's enormous scale.

The Uber IPO is expected to be one of the biggest in history - even during a period of market unrest.

This story is developing.

The two largest ride-sharing companies reportedly filed for initial public offerings as of last week.




Uber's valuation during its last funding round was almost $76 bn and the silicon valley company is aiming for a valuation of almost 120 bn during its IPO. Lyft could potentially seek a valuation as high as $30 billion. Lyft confirmed its plan to list on its website and said the timing of the IPO depended on market conditions.

Uber has raised about US$18 billion from an array of investors since 2010, and it now faces a deadline to go public.

The company employs more than 16,000 people, operates in 65 countries carrying out 15 million trips daily.

Timing of the listings is uncertain, given the current turmoil in stock markets, but the filings made last week leave the door open for IPOs in early 2019. This was the first time that Uber had revealed the numbers of its food delivery business. But, it will be interesting to see how the investors are going to value the company by considering its prospect.

"With autonomous cars on the horizon, it is anyone's guess where this sector goes in the future", said Jeff Zell, senior research analyst and a partner at IPO Boutique in Florida. Its investors include General Motors Corp, which holds a 9 percent stake in Lyft that it acquired for $500 million in 2016, but GM has wound down its cooperation with Lyft, choosing instead to acquire the autonomous auto company Cruise. This simultaneous would obviously be prolonging the protracted battle between the Lyft and Uber, as they had been fierce rival over the past few years.

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