6 key insights for Uber's mega-IPO
Uber is a lot more than a ride-sharing app — it is also one of the most disruptive forces in payments.
Its achievements include creating a seamless payments experience that allows riders to travel without needing a card or cash; and a cobranded credit card account that allows people to apply for and manage the card without ever leaving the Uber app. Its Asian rival, Grab, has already gone much farther in operating its own financial services arm.
Uber's influence is set to pick up even more speed in what is expected to be the world’s largest IPO, valued at $100 billion —which four times the previous record setter, Alibaba ($25 billion in 2014), and more than five times the amount raised by another record setter, Visa ($17.9 billion in 2008).
However: In its S-1 Registration, Uber reports that it may never achieve profitability. Reuters reported that investment bankers had been initially discussing a $120 billion valuation but have become more conservative as of late. Perhaps Lyft’s poor performance after its IPO has cast a shadow over Uber upcoming IPO.
The company breaks down its business in three main product lines: 1) Personal mobility (ride share, scooters and bikes); 2) Meal delivery (Uber Eats); and 3) Logistics (Uber Freight).