Uber IPO May Give Co-Founders Kalanick and Camp $13 Billion Stake

An Uber driver using the Uber app on her phone

An Uber driver using the Uber app on her phone

According to market sources, the company may provide a price range for its shares later this month and would go public in May. It reportedly plans to sell about $10 billion worth of stock, which would make it one of the largest U.S. tech IPOs ever coming in at an anticipated $120 billion. However, both companies are also treading in uncharted territory when it comes to insuring a risk profile even actual insurers do not have enough information on.

Meanwhile, Lyft had set aside US$863.7 million in its captive insurance subsidiary at the end of 2018, compared to US$360.9 million in 2017, the company revealed in a public offering document.

Although it is a privately held company, Uber also disclosed its quarterly results for two years "to bring in clarity and visibility".

Uber in 2018 had $11.3 billion revenue, up around 42 percent over 2017, but below the 106 percent growth the prior year.

Uber's valuation in its latest private investment round was more than $70 billion, but reports said the ride-hailing giant was likely to seek a market value of close to $100 billion.

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Uber Technologies Inc. filed for an initial public offering, starting the clock on what's expected to be the biggest US listing this year.

While revenue growth in its ride-hailing business slowed, its food delivery service, Uber Eats, is soaring. German taxi drivers protested Wednesday ahead of an anticipated decision by the government to relax regulation and allow Uber to expand within the country, reported Deutsche Welle.

Taking a page from Lyft's book, Uber also said it would use the IPO proceeds to dole out cash "appreciation" awards to its drivers. 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. Uber's operating loss, for example, amounted to 27 percent of revenue in 2018, while Lyft's operating loss was 45 percent of revenue.

- Alphabet, Google's parent company, owns 5.2%. Uber says it is on a "new path forward" under the leadership of CEO Dara Khosrowshahi; the phrase is repeated a total of seven times in the document.

More than 60,000 drivers have filed or told Uber that they intend to file arbitration cases against the company, claiming that they were misclassified as independent contractors, the company said.

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