Uber may never be profitable … admits Uber

Private ride-hailing giant Uber, which is aiming to follow rival Lyft in becoming a public company this year, has warned that it may never be profitable. The candid admission comes in a filing to the US Securities and Exchange Commission (SEC) as Uber prepares for an initial public offering (IPO) which it reportedly hopes will value the company at $100 billion. This potential IPO figure is some way below the $120bn predicted by analysts just last year. And Uber warns: “We have incurred significant loss
April 12, 2019 Read time: 2 mins

Private ride-hailing giant 8336 Uber, which is aiming to follow rival 8789 Lyft in becoming a public company this year, has warned that it may never be profitable.

The candid admission comes in a %$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 link-external filing false https://www.sec.gov/Archives/edgar/data/1543151/000119312519103850/d647752ds1.htm false false%> to the US Securities and Exchange Commission (SEC) as Uber prepares for an initial public offering (IPO) which it reportedly hopes will value the company at $100 billion.

This potential IPO figure is some way below the %$Linker: 2 Internal <?xml version="1.0" encoding="utf-16"?><dictionary /> 4 37156 0 link-external $120bn false /sections/transmart/news/uber-ipo-could-be-valued-at-120-billion/ false false%> predicted by analysts just last year.

And Uber warns: “We have incurred significant losses since inception, including in the United States and other major markets. We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability.”

Other admissions in the SEC filing include: “We are making substantial investments in new offerings and technologies, and expect to increase such investments in the future. These new ventures are inherently risky, and we may never realise any expected benefits from them.”

The company says the world of driverless taxis may not offer all that is hoped, too: “We may fail to develop and successfully commercialise autonomous vehicle technologies and expect that our competitors will develop such technologies before us, and such technologies may fail to perform as expected, or may be inferior to those developed by our competitors.”

In what has become a familiar refrain, the company also argues that its business would be “adversely affected if drivers were classified as employees instead of independent contractors”.

For more information on companies in this article

Related Content

  • Karhoo launches door-to-door mobility service in France
    May 22, 2019
    Karhoo has joined forces with SNCF Mobilités to bring door-to-door transport services to travellers across France. Boris Pilichowski, co-CEO Karhoo, says: “Enabling door-to-door transport for SNCF customers takes us a step closer to a truly integrated network while improving the passenger experience ten-fold.” Karhoo has created a platform which it says enables travellers on SCNF’s high-speed trains to book first- and last-mile journeys by taxi or private hire vehicle. Called Mon Chauffeur, the service
    Read More
  • ID Tech and IIT Ropar explore IoT and RFID applications for smart cities in India
    February 1, 2019
    Developing smarter cities in India is the goal of a tie-up between smart card company ID Tech and the Institute of Technology (ITT) Ropar, an academic institution in the northern India state of Punjab. ITT Ropar, which specialises in engineering, science and technology, will join ID Tech in looking at how Internet of Things (IoT) and radio frequency identification (RFID) can help. ID Tech director Saurav Khemani says: “We aim to address social challenges posed by rapid urbanisation and economic develo
    Read More
  • Counting down to IBTTA annual meeting
    July 24, 2015
    The International Bridge, Toll and Turnpike Association’s 83rd annual meeting and exhibition takes place in Dublin, Ireland on 30 August to 1 September. The industry's thought leaders from around the globe will discuss the most pressing topics in the field in a country that has gone through a rapid road network transformation in the 21st century.
    Read More
  • LED lighting strobes within ITS
    April 29, 2013
    Specialist in the design and manufacture of LED illumination and control solutions for machine vision and intelligent traffic applications, Gardasoft, has published a White Paper that deals specifically with the integration and advantages relating to the use of LED lighting within ITS systems.
    Read More

Highlighted Content