Uber targets $120bn valuation

Uber targets $120bn valuation

uber

Uber may be targeting a $120 billion (£91 billion) valuation in a stock market flotation planned for next year.

According to the Wall Street Journal, banks who are hoping to run the float have told the ride-hailing app to aim for this high valuation.

Uber’s float is likely to be the most highly anticipated listing of next year.

If it is valued to highly, it will be worth three times more than Ford (NYSE: F) and over twice as much as the electric car firm Tesla (NASDAQ: TSLA). 

In April, Uber was valued at $72 billion. This was after the Toyota (TYO: 7203) invested $500 million into the group and teamed up on developing driverless cars.

If Uber does debut at $120 billion, it will be the biggest since the Alibaba Group of China began trading back in 2014.

Uber and Lyft are both planning flotations for 2019.

Kathleen Smith, a principal at Renaissance Capital, said: “The first ride-sharing I.P.O. will get a lot of attention, so I think there’s some marketing value to being the first one out of the gate.”

Lyft recently picked JPMorgan Chase (LON: JMC) to lead its own initial public offering.

Earlier this year Apple and Amazon both reached trillion-dollar valuations.