Uber reveals IPO with warning it may never make a profit

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The number of customers per month who use Uber not only for travel but also for services such as food delivery, amounted to 91 million in 2018, which is 34% more than a year earlier. That is a lot of money for a company that is still operating in the red.

Uber revealed in the filing it could have to pay a license fee to Waymo or face a substantial delay to the development of its self-driving technology if the initial assessment of its technology by an independent expert is confirmed.

The San Francisco company also disclosed a legal cloud hanging over its head as government authorities and regulators investigate whether the company broke any laws.

Among other matters, Uber demonstrated the U.S. Justice Department is conducting a criminal investigation into a yearlong cover-up of a huge computer break-in during 2016 that heisted personal information belonging to millions of drivers and passengers.

Uber Technologies Inc. and its bankers will hit the road this month with one big name on their lips as they try to entice investors with favorable comparisons to businesses that it seeks to imitate or surpass.

Profitability has been demonstrated to be a challenge for both Lyft and Uber. Drivers for both companies whine about wages, and they're able to easily change making it hard for either company maintain passengers fares and to reduce driver expenses.

Uber said it plans to give bonuses to qualified drivers and is setting aside an undisclosed portion of its stock for drivers to buy.

But immediately after submitting an application for an IPO, many people had questions about how stable the Uber business is.

Uber in 2018 had $11.3 billion revenue, increasing 42 percent over 2017, but less than the 106 percent growth the prior year.

After Lyft (LYFT) went live on Nasdaq less than two weeks back at the end of March 2019, Uber is finally bringing preparations for their IPO to an end, which means that the ridesharing magnum might be out in the market already in May 2019. The profit was mainly driven by Uber's sale of assets in Southeast Asia and Russian Federation as well as an increase in estimated value of its stock in Didi Chuxing, China's largest ride-hailing company, which Uber sold its Chinese business to in 2016. It is worth noting that Uber Eats revenue tripled, reaching about $ 1.5 billion in 2018, compared with $ 587 million a year earlier.

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The company is on its way to price its IPO and start trading on the New York Stock Exchange in early May.

In the long run, Uber is broadly expected to be the tech IPO since Chinese e-commerce giant. And it is very likely to be the biggest among US tech firms because Facebook took its bow on Wall Street seven decades ago in a time when most people hadn't ever considered using an app on their smartphone to muster a ride from strangers driving their own cars.

Uber launched as a vehicle service where customers are able to hail drivers with a couple taps on a smartphone as UberCab, in 2009.

The company operates in 65 countries and has completed 10 billion trips worldwide. In addition, the company invests large sums in such enterprises as food delivery and scooters.

But Uber faces challenges that Lyft does not due to a string of revelations that sullied its reputation among consumers. The setbacks have included rampant internal sexual harassment and allegations it stole self-driving auto technology.

Khosrowshahi joined Uber in 2017 to replace company co-founder Travis Kalanick who was ousted as CEO. Now it will be up to Kalanick's successor, Khosrowshahi, to persuade investors that Uber has cleaned up its act and merits a market value higher than Ford Motor and General Motors combined.

Cayman, a subsidiary of Softbank, is Uber's biggest shareholder with 16 percent.

But it suspended testing when one of its self-driving vehicles struck and killed a pedestrian in Arizona past year. The company resumed testing self-driving automobiles.

The breakdown shows Uber has been generating. The company warned that potential future regulations or increases in insurance costs could affect the business that was autonomous vehicle.

The parent firm of Google, alphabet, owns 5 percent of the company as it competes with Uber on self-driving technology. Alphabet also owns approximately 5% of Uber rival Lyft's inventory.

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