The report mentioned that Uber’s revenue for this year is expected to come in a range of $10 billion to $11 billion but the company is not expected to rake in profits for at least another three years. The IPO proposals value Uber’s food delivery service UberEats at up to $20 billion, twice that of GrubHub. While UberEats is still operating on losses, it is expected to pick up soon.
It cannot be said with certainty that the IPO will take place at the anticipated timeframe or valuation as the IPO market is prone to severe fluctuations.
Taxi race turns to Wall Street as Lyft, Uber shift to IPO mode
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Uber’s competitor Lyft is also said to be planning an IPO for early next year and according to a report by CNBC, the ride-sharing service has selected JPMorgan Chase (JPM) to lead the same. The company had also considered Credit Suisse Group AG (CS) and Jefferies Group LLC for the IPO. Lyft’s valuation is expected to top $15.1 billion, an amount that was set after the firm raised $600 million earlier in 2018.
Uber has battled several controversies from allegations of toxic work culture to theft of trade secrets from Waymo, which have in turn benefited Lyft.