Home News Uber reveals IPO details, but will it ever be profitable?

Uber reveals IPO details, but will it ever be profitable?

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Uber reveals IPO details, but will it ever be profitable?

Ride-hailing firm Uber has released details of its IPO plans, warning that it “may not achieve profitability”.

The company will list its shares on the New York Stock Exchange under “UBER”.

However, Uber expects operating expenses to “increase significantly in the foreseeable future” and warned that it “may not achieve profitability”.

The deal will most probably value the company at roughly $100 billion, which makes it 2019’s biggest initial public offering.

Last October, Uber targeted a $120 billion valuation in its planned stock market floatation.

A price range for its shares will be announced later on in the month, and Uber aims to go public in May.

Though the business has grown significantly over the past three years, its public scandals and growing competition have impacted its attempts to gain riders.

The Guardian noted the biggest “risk factors” from Uber’s past that may dampen its future prospects. These include its work place culture, in which certain sexual harassment and discriminatory practices occurred according to a former employee, and the treatment of its drivers.

The company’s drivers are classed as “independent contractors” which means they are ineligible for minimum wage, overtime, worker’s compensation insurance and other benefits, according to the Guardian.

Lyft, Uber’s smaller rival, was the first of the two ride-hailing businesses to float, listing at the end of March.

Towards the end of last year, Uber revealed its plans to launch a subscription for customers in Los Angeles, Austin, Denver, Miami and Orlando, to allow passengers to avoid price surges during peak times, always riding at a fixed price rate.

Headquartered in San Francisco, California, the transportation network company has operations in 785 metropolitan areas globally and 91 million users.

At 19:57 GMT-4 yesterday, shares in LYFT Inc (NASDAQ:LYFT) were trading at +1.48%. Shares in Uber’s rival have dropped by over 15% since listing at the end of last month.