Uber self-driving cars' could see US$1b investment

Galtero Lara
Marcha 16, 2019

To fight against losing more money, Lyft is said to be preparing a report that would hopefully convince investors that Lyft won't stay in the red zone for too long, while investors still holding interest in Lyft and Uber are focusing on the future potential of these companies. That would put it just after the IPO of rival Lyft, which is expected to go public in late March. Uber declined to comment. Lyft, meanwhile, is looking for a market valuation between $20 billion and $25 billion after being valued at $15 billion in its most recent private funding.

"There is only so much capital investors are willing to put into ride-sharing companies", said Kathleen Smith, a principal and manager of IPO ETFs at Renaissance Capital.

Uber reportedly saw $11.3 billion in revenue a year ago and a loss of $3.3 billion. But the company lost $3.3 billion, excluding gains from the sale of its overseas business units in Russian Federation and Southeast Asia.

Lyft's revenue for past year was $US2.2 billion, with $US8.1 billion in gross ride bookings.

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Since Uber still has weeks of preparation before releasing third IPO, Lyft has a great shot at issuing Lyft IPO before Uber gets a chance to do so, which will help the company avoid being overshadowed by Uber that undoubtedly has more operational force in oppose to Lyft. The company lost $911 million.

Uber chief executive officer Dara Khosrowshahi will be tasked with convincing investors that he has successfully changed the company's culture and business practices after a series of embarrassing scandals over the last two years. It operates in more than 70 countries and includes ride-hailing, bike and scooter rentals, freight hauling, food delivery and a self-driving auto division.

Uber Technologies Inc is in advanced discussions to sell a $1bn stake in its costly self-driving vehicle unit to a consortium of investors led by SoftBank Group Corp, people familiar with the plans said.

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