One of the pioneers of the "Gig" Economy is getting ready to go public on the heels of its' smaller rival, Lyft. It will be interesting to see how it fares out (This updated released courtesy of the team at the Information):
The big one is almost here. Uber’s IPO filing could be made public as soon as Thursday, Reuters reported on Tuesday, adding that Uber plans to sell $10 billion worth of shares while valuing the ride hailing company at between $90 billion and $100 billion. Those figures are in line with a report in The Information from January.
The timing of the prospectus means Uber could be a publicly traded company a month from now. Thousands of employees and ex-employees may become millionaires by early November—when lock-up restrictions would expire.
The Reuters report says bankers initially had hoped to push Uber’s valuation up to $120 billion. But Uber had to set its sights a little lower, thanks in part to the recent drop in the stock price of smaller rival Lyft, which went public less than two weeks ago. (Lyft shares were down 11% on Wednesday—ironically, some people blame that drop in part on talk of the upcoming Uber IPO.)
Reuters reported that some existing Uber investors would cash out at the IPO, which will be among the biggest in history in terms of dollar value. First, though, CEO Dara Khosrowshahi has to explain Uber’s various business lines and where they are going. A primer can be found here. —Amir E.