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Latest: Uber share prices set to start at just $45

Uber share prices set to start at just $45

Ride-share app Uber is set to make its Wall Street debut when markets open on Friday morning, in what is widely regarded as one of biggest and most anticipated IPOs in recent memory.



The world's leading ride-hailing service set the stage for its long-awaited arrival on the stock market by pricing its initial public offering at $45 per share Thursday.

The price is at the lower end of its targeted range of $44 to $50 per share. This may have been driven by the escalating doubts about Uber's ability to make money since its main rival, Lyft, went public six weeks ago and continues to see its stock drop.

Even at the tamped-down price, Uber now has a market value of $82 billion - significantly more than century-old automakers General Motors and Ford Motor.
The company is offering 180 million shares of its common stock, which is projected to raise around $8.1 billion by market close Friday, with an additional 27 million shares available for underwriters.

Considered to be the pioneer of smart-phone cab hailing and one of Silicone Valley’s greatest success stories, Uber has accumulated huge losses throughout its 10 year existence with a wealth of controversy to match.

In 2018 the company’s revenue reached $11.3 billion, with losses of $1.8 billion were reported. According to its IPO filing Uber has never actually turned a profit.

Despite exploring a number of new revenue streams – from food delivery to scooter rental – personal mobility remains Uber’s core business model.

Recently the company has become embroiled in a pricing war with Lyft, with both of the hailing apps trying to attract and retain customers with low prices, while paying drivers enough to remain under their employ too.

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