UBER Files for IPO with US Securities and Exchange Commission (SEC)
As the evolution of Bitcoin continues to penetrate the global finance sector, it is important to know what is happening in the traditional mainstream financial world to better interpret where the ‘new-age' cryptocurrencies' path is set to go. In a recent publishing by UBER Technologies, it has been revealed that the transportation network company, headquartered in San Francisco, has filed with the US SEC an offering of the firm’s common stocks.
As per the Prospectus, UBER’s goal is to increase, “capitalization and financial flexibility and create a public market for [their] common stock.” Of what remains from the proceeds, the firm plans to use it across different expenses they are likely to incur, including corporate-related financings (i.e. working capital, operating expenses, expenditures, etc.).
Interestingly, the summarized Prospectus also indicates that UBER will be rewarding their drivers, who are deemed an essential part in the firm’s success. The reward will be a “one-time cash Driver appreciation,” with a total of anywhere around $300 million to be distributed across drivers around the world.
News outlet, The Bitcoinist, has also posted on this matter, sharing the company’s financial goals as being as follows:
“The company is aiming to raise $10bn from its IPO and recently told some of its investors that it could be valued at $90bn to $100bn, according to people familiar with the matter. The company was last valued at $76bn in a private fundraising in August.”
Given that UBER provides services to nearly 2% of the population across 63 countries, their endeavor in offering common stocks is definitely a big one. As for the growth the company has experienced since its existence, the following was noted:
- Revenue from Ridesharing services: $3.5 billion (2016) to $9.2 billion (2018)
- Growth of Gross Bookings: $18.8 billion (2016) to $41.5 billion (2018)
- Consumer Use of UBER: 26 billion miles in 2018
In addition to the aforementioned numbers, the ridesharing firm also shared some of their strengths as a company as well as benefits enjoyed by drivers:
- 91 million MAPCs for the quarter ended December 31, 2018
- 1.5 billion trios for quarter ended December 31, 2018
- 3.9 million drivers for quarter ended December 31, 2018
- Drivers’ earnings: $78.2 billion since 2015, $1.2 billion in tips since 2017 – both through December 31, 2018.
UBER’s interest in IPO supposedly did not surprise many, as their drivers in certain parts of the world have opted out of receiving fiat currency and have since preferred cryptocurrencies notes The Bitcoinist. This is popular mean in Argentina because of its devaluing currency.
To read the entire Prospectus and other interesting information about UBER, click here.