Uber, the ride-hailing app, is planning to float on the stock market in April. According to reports from the Reuters news agency, the company will register with US regulator the SEC. It is also planning a roadshow for investors in April.
This is the second company in the same industry to float stocks on the market since the beginning of 2019. Lyft started the process at the beginning of March and it is expected that it will complete the process by the end of the month.
Both companies had already announced their intentions in 2018.
Uber started in 2009 and was valued at $79 billion. It is hoping that it will be valued at $120 billion when it floats. However, the ride-hailing company has struggled to keep news positive about its brand. It has been a controversial entrant and has been blamed in more than sixty countries for disrupting the more traditional taxi industry.
Regulators in many countries are continuing to make operations for the company difficult. Private hire operators are also fighting back against the company.
There has also been some controversy over the way drivers are classified by the company. In the US and UK, the company has faced legal challenges after claiming its drivers are self-employed contractors instead of employees.
There have also been significant problems behind the scenes. Their chief executive, Travis Kalanick, was forced to resign in 2017 after a number of scandals within the organisation.
The company also had a data breach which affected 57 million riders and drivers. Some have suggested that the company paid the criminals to delete the information, but there is limited evidence that the data was destroyed.
In addition, Uber’s latest financial report shows they made a whopping $1.8 billion, even after tax benefits.
Uber’s Loss Is Lyft’s Gain
These have helped Lyft to raise its profile in the US and Canada, its only places of operation. The problem for the company is that its valuation is well below that of Uber, being only $15 billion. In addition, recent financial figures released have had stock market experts worried about their performance.
Some say that while revenue per ride is increasing, so are their costs per ride.