Rumour: Uber could launch an IPO next year

According to a media report, Uber has received proposals from Morgan Stanley and Goldman Sachs for an IPO next year. Both the banks have estimated the company to be worth up to US $120 billion in an IPO.

The Uber IPO is expected to be the largest on the New York Stock Exchange since China’s Alibaba Group made their debut in 2014. The Uber IPO could rival Facebook’s 2012 IPO valued at US $104 billion. However, unlike the social networking website, the ride hailing company is not profitable on a day-to-day basis.

The ride hailing company did declare a profit in Q1 2018, though most of it is attributed to pulling back from expansion plans in Russia, China and South East Asia. Uber reported a Q2 2018 loss of US $891 million, despite a 41 percent increase in bookings compared to a year ago.

Uber is also working on expanding its food delivery service UberEats and also rentals of electric bikes and scooters, along with bookings for freight shipments. The San Francisco based company has also considered selling its autonomous vehicles unit.

It has also been reported that Uber’s rival in USA - Lyft, is also planning to go public. It is currently valued at US $15 billion.

Source: NY Times

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