The Uber IPO: What You Need To Know

Undaunted by the brutal Lyft Inc LYFT IPO, the OG ride-hailing company makes its market debut Friday.

The IPO

Uber Technologies will issue 180 million shares on the New York Stock Exchange under ticker UBER, according to the firm’s S-1 filing.

The ride-hailing company priced the IPO Thursday at $45 per share; the offering represents 10.7 percent of outstanding shares and is expected to bring in $8.1 billion. 

The lead underwriters include Morgan Stanley, Goldman Sachs, Bank of America Merrill Lynch, Barclays, Citigroup and Allen & Company.

The Company

What began with ride-hailing in 2009 now includes a food delivery service, business fleet, urban bike and scooter program, and freight operation.

Uber’s personal mobility segment services 700 cities in 63 countries — and management sees vast potential for growth. Its ride-hailing program claims less than 1 percent of the transportation market share in each global region. The total addressable market across 175 countries yields a $5.7-trillion opportunity.

Uber Eats serviced more than 15 million monthly average platform visitors in the last quarter of 2018, a sum representing 1-percent penetration. The company plans to expand the offering from 500 to 700 cities and seize more of the $795-billion serviceable addressable market.

Uber launched its freight segment in May 2017 and has since contracted more than 36,000 carriers to serve more than 1,000 shippers, including Anheuser Busch InBev NV BUD and Colgate-Palmolive Company CL. It intends to grow its share of the $700-billion U.S. market from its mere 0.1-percent claim, and it also plans expansion into Europe’s $600-billion market.

To supplement its services and further revolutionize personal mobility, Uber has partnered with researchers and manufacturers to craft autonomous vehicles.

The Finances

The firm’s revenue has grown from $3.85 billion in 2016 to $7.93 billion in 2017 to $11.27 billion in 2018. The net loss from operations fluctuated from $3.02 billion to $4.08 billion to $3.03 billion over the same period.

Last quarter, ride-hailing accounted for 84.4 percent of revenue, while Uber Eats comprised 11 percent.

Related Links:

Is Driver Strike Ahead Of Uber's IPO A Sign Of Things To Come?

Wedbush Initiates Uber At Outperform, Calls Its The 'Amazon Of Transportation'

Photo courtesy of Uber.