The Wall Street Journal reports the ride-sharing pioneer has received offers for an initial public offering based on a staggering valuation of the company.
The report comes from two anonymous insiders who named Goldman Sachs Group Inc and Morgan Stanley as the financiers behind the approach in September 2018.
The valuation represents a surge in value since it raised funds in late 2015 based on a valuation of almost US$70 billion.
Report: Uber could be worth $120 Billion in possible IPO https://t.co/6b97zHXKfh
— TIME (@TIME) October 16, 2018
Uber valued at US$120 billion, but can it actually turn a profit?
The US$120 billion figure places Uber’s value at more than double the combined worth of General Motors, Ford Motor Company and Fiat Chrysler Automobiles NV.
Uber CEO Dara Khosrowshahi, who has been in the role since 2018, has always maintained that Uber is aiming for a 2019 IPO.
Under Khoswowshahi’s leadership, Uber has moved towards narrowing its losses though it has still lost more than US$10 billion overall and only made a profit for the first quarter in 2018 by selling off parts of its business.
It has broadened its revenue streams with the addition of food delivery service Uber Eats, which is believed to be worth up to US$20 billion on its own.
It is also moving quickly towards establishing a flying car fleet for its ride-hailing service, aiming to commence trials for the new technology as soon as 2023.
— Inc. (@Inc) October 16, 2018
Lyft aiming to beat Uber in the race to go public
Investors have long eyed Uber for an IPO. Only founded in 2009, it has been a phenomenal market disrupter despite more recently running into trouble with governance and regulatory issues.
In June 2018, it regained its licence to operate in London after convincing the regulatory body it had changed its internal review process and had implemented training for all its drivers.
Meanwhile, Uber challenger Lyft will go ahead with its own IPO and has selected JPMorgan Chase & Co, Credit Suisse Group AG and Jefferies Financial Group Inc., to finance the offering, which will occur in the first half of 2019. It is apparently determined to go public before Uber.
Header image credit: Mark Warner