Uber Set to Raise $90 Billion in IPO (While Giving Drivers the Middle Finger)
The valuation is US$30 billion shy of the initial estimate some Wall Street banks pitched to take the company public last year. While nowhere near US$120 billion, it’s still close to US$14 billion more than the company’s most recent private valuation. (The Information)
Talking point: The former estimates were based on projections that Uber would double its 2017 net revenue to US$14.2 billion by 2019, and that its loss before interest, taxes and non-cash items like depreciation and stock compensation would shrink from US$1.7 billion in 2018 to US$500 million in 2019.
But Uber has struggled to meet targets amid a general stock market decline. Meanwhile, increasing ride-hailing regulations in core markets like New York City could further hinder the company’s growth.