"Lyft shares continue to be weak as many investors we have spoken with have worries about Uber's impending S-1 and roadshow which could be a dark shadow over Lyft's stock in the near-term", Wedbush analyst Daniel Ives wrote in a note to clients. Uber reported year-over-year revenue growth of 42 percent to $11.3 billion in 2018 and gross bookings of $49.8 billion, but said it lost $1.8 billion, excluding some transactions.
Uber would be the largest IPO since that of Chinese e-commerce company Alibaba Group Holding Ltd in 2014, which raised $25 billion. Investment bankers previously told Uber it could be worth as much as $120 billion.
In identifying potential risks for its public filing, Uber acknowledged that it has "incurred significant losses since inception". The San Francisco-based company applied to list on the New York Stock Exchange under the ticker UBER, according to its filing Thursday with the U.S. Securities and Exchange Commission. Uber is seeking a valuation of between $90 billion and $100 billion, influenced by the poor performance of smaller rival Lyft Inc's shares following its IPO late last month, the sources said.
Uber faces questions over how it will navigate any transition towards self-driving vehicles, a technology seen as potentially dramatically lowering costs but which could also disrupt its business model.
- Travis Kalanick, Uber's founder, owns 8.6%.
Uber, the highest valued private company, just filed to go public. A representative for Uber declined to comment. The offering, disclosed only weeks after key rival Lyft make its market debut, could open the door to a series of other major technology industry IPOs by players such as Airbnb, Pinterest and messaging software maker Slack.