If its long-awaited IPO takes place next year, Uber could be valued as high as $120 billion – one of the biggest-ever technology sector listings.
The whopping valuation is about $50 billion more than Uber’s most recent valuation. The company’s smaller rival, Lyft, is also expected to make its IPO in 2019, most likely earlier than Uber. The two initial public offerings taking place the same year “will test investor tolerance for money-losing technology unicorns”, Reuters observed. Uber operates in over 60 countries and is the largest of the venture-backed unicorns, most recently valued at $72 billion.
Uber has had a bumpy ride, making sizeable investments to attract drivers and enter new markets worldwide, in addition to paying large settlements this year. The company is also continuing to seek new growth opportunities outside of its core ride-hailing business, a segment of the technology sector which has grown fiercely competitive. It launched its food delivery service, Uber Eats, in 2014. More recently, in March, it expanded its ride-hailing business into the B2B space with Uber Health, specifically for healthcare providers.
CEO Dara Khosrowshahi was appointed to the top executive role last year, following the ouster of Travis Kalanick. He has vowed to mend Uber’s scandal-ridden work culture and business practices, not to mention its image, leading up to the IPO. Uber has moved to improve its transparency and accountability, and Khosrowshahi said in September that the Uber IPO is on track for 2019. He added that he is not concerned about Lyft going public first because he expects enough demand for both companies, Reuters reports.
In August Uber hired Nelson Chai as its Chief Financial Officer, filling a long-vacant key executive role. A Wall Street veteran, Chai is a former finance chief at Merrill Lynch and the New York Stock Exchange. The appointment was a crucial step in Khosrowshahi’s efforts to overhaul the company, and followed a lengthy executive search process. Chai is a close associate of John Thain, the former Merrill Lynch CEO who joined Uber’s board last year, and helped arrange his introduction to Khosrowshahi, the Financial Times reports.
