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Uber Connects Lift in Race to Tap Investors

Uber Technologies Inc. filed confidential paperwork this week for its initial public offer, according to people familiar with the issue,…

Uber Technologies Inc. filed confidential paperwork this week for its initial public offer, according to people familiar with the issue, because less competitor Lyft Inc. is the first to market.

S-1 filing with the Securities and Exchange Commission puts Uber’s neck and neck with Lift. Both planned stock introductions are among the largest in a multitude of deals aimed at 2019. Promoting Thursday said it had submitted its S-1, and people familiar with the issue said that it aims to debut in March or April. 19659003] Ubers application indicates that it may be public as soon as the first quarter, as The Wall Street Journal reported in October. It would be earlier than many observers had expected. Uber Chief Executive Dara Khosrowshahi has said he expected to seek debut in next year’s second half.

Uber has called for planning around its IPO “Project Liberty”, according to one of the people who are familiar with their plans.

It could be a nice reference to the thousands of employees and investors who have been waiting to sell their full share in the company for a profit, says a person. Uber has held the latest secondary sales, so that some investors and workers can sell some of their efforts.

Details of Uber’s submission, including exactly when submitted, were not immediately available. The company’s bank advisor has suggested that the riding company could become public at a valuation of $ 1

20 billion, the newspaper reported. The company’s latest private valuation amounted to $ 76 billion, when it sold about $ 500 million in Toyota.

Based on Pipeline of Potential Intellectual Property Rights, which includes the data industry Palantir Technologies Inc., Slack Technologies Inc. and Airbnb Inc., 2019 may be a record year for market debts in terms of dollar accrued. It could exceed the high watermark reached in 2000, when technology companies raced cash at high values ​​at the height of the dot com bomb.

Uber and Lyft, together with non-US companies like China’s Didi Chuxing Technology Co. and Singapore’s Grab has radically changed how people walk around in urban areas and have experienced traditional cabins. The companies have utilized their core business to expand to other services, such as meal delivery and bicycle sharing.

But Uber, like Lift, is unprofitable. Its loss for the third quarter increased to $ 1.07 billion as a result of a sales gain of 38% to $ 2.95 billion, and it has pointed out that the last few years in bonds do not expect to be red for at least three years. Lift had a loss of $ 254 million on a sales of $ 563 million in the last quarter, the Journal reported.

Lift has raised 5.1 billion dollars so far, compared with about 20 billion dollars for Uber. Both figures include debt financing. Uber has 20,000 employees worldwide, which is four times more than Lyft has.

For its presentations to potential investors, Uber is likely to emphasize the success of its side projects as prepared food delivery unit UberEats and trucking Shipping, people familiar with the issue have said. It works in about 70 countries worldwide, while Lift is only in the US and Canada.

Uber had 69% of the US market, while Lyft had 28% in October under another measure that tracks credit card expenses.

Mr. Khosrowshahi has put IPO planning in the lead for his work in recent months. Among the latest positions, the company’s first financial officer is in more than three years, a new chairman and a chief supervisor.

Uber also weighs strategic transactions prior to listing, including mergers and acquisitions, which could postpone the timeline for several months, people who are familiar with matter said. Mr Khosrowshahi and Uber expect these agreements to increase the value of the offer, these people said.

Uber last year rejected a series of scandals and setbacks, including allegations of sexual harassment at the workplace, the alleged theft of business secrets with self-propelled cars and several federal investigations in their business practices. Investors forced out Founder Travis Kalanick as CEO, initiating Mr. Khosrowshahi from

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At his first appearance in front of employees in August 2017, he took up his plans to go public and said it could happen in as little as 18 months. The latest application indicates that the company is in line with the advice.

Investors have private praise Mr. Khosrowshahi to collaborate with regulatory authorities, after winning early in London and Brazil where Uber’s operations were threatened by new rules. [19659004] Uber still invests heavily in its own car division, which costs about three quarters of a billion dollars to work in 2017. Following a fatal accident in March involving one of the robots, Uber has taken the vehicle off roads, closed its business in Arizona and cut staff in other offices, including Pittsburgh. It has a pending application to return high-tech cars to roads in Pennsylvania.

Although Mr Khosrowshahi has promised his support for continued investment in self-propelled vehicles, some investors and managers have urged him to further reduce spending or submit the division.

Write to Greg Bensinger at [email protected] and Maureen Farrell at [email protected]

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