Target valuation would be largest float for US tech company since Facebook in 2012
Uber has unveiled the terms of a hotly anticipated stock market float which it hopes will value the ride-hailing service at more than $91bn (£70bn).
While the target is $10bn less than some bankers suggested the 10-year-old firm might be worth, the valuation is more than double the value of the 116-year-old carmaker Ford and would be the largest float by a US tech company since Facebook’s in 2012.
Since its launch in San Francisco in 2010, Uber has expanded to more than 700 cities, from Abilene (Texas) and Abuja (Nigeria) to Volta Redonda (Brazil) and Zurich (Switzerland).
Uber recorded sales of $11.4bn (£8.8bn) in 2018, but lost $1.8bn. The previous year it lost $2.2bn. Executives warned that expenses were set to “increase significantly in the foreseeable future”.
More than 91 million people used the app last year to hail rides or order food.
Uber has been involved in several controversies, including allegations against its drivers of sexual assault, a major data breach, and the use of illicit software to evade authorities.
While its often cheaper fares have been welcomed in most cities, its app is banned in Denmark, Bulgaria and China.
The company was fined £385,000 last year by the Information Commissioner’s Office for a data breach that affected 3 million British users.
The IPO will deliver huge fortunes to Uber’s founders, Travis Kalanick and Garrett Camp, who own 8.6% and 6% of the shares respectively.
The biggest shareholder is the Japanese billionaire Masayoshi Son’s investment fund Softbank, which owns more than 16% of the firm.
Uber recently bought the electric bike company Jump Bikes for $200m.
It recently launched Uber Freight, which matches shipping companies with truck drivers in a similar way to that by which the original app links passengers and taxi drivers.
The company is developing self-driving and flying cars.
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