Bonus for drivers as Uber seeks $90bn share sale value

The ride hailing firm also announced a one-off bonus for drivers as it prepared to take the company public.

Uber said it planned to offer 180 million shares in its Initial Public Offering (IPO) at a price of between $44 (£34) per share to $50 (£39) per share.

There would be an additional 27 million shares sold by current equity holders, Uber said.

It had been widely reported in US media that Uber had reduced its top valuation from a more lofty $120bn (£93bn) following a lacklustre stock market debut for its largest rival in North America, Lyft.

While Lyft’s shares climbed when trading first began last month, its market value has plummeted since – down by 22% ahead of Friday’s opening.

In the filing with the Securities and Exchange Commission, Uber revealed the path to profitability would likely be a rocky road for investors.

It reported a net loss of $1bn (£775m) for the first quarter of the year on revenues of roughly $3bn (£2.3bn).

Uber also said PayPal had agreed to purchase $500m (£388m) of stock in a private placement as the pair embark on a venture to create a digital wallet for customers.

It said its shares would trade on the New York Stock Exchange under the ticker name UBER from 10 May, if all proceeded smoothly.

The filing kicks off a 10-day roadshow for potential investors to ask questions of senior management.

They are likely to demand answers on subjects ranging from profitability to the rights of drivers following controversy over its treatment of so-called gig economy workers and safety provisions.

Uber confirmed it intended to pay drivers a one-off cash “appreciation reward” from Saturday, including those in the UK.

The firm said the size of the award would be based on the number of trips they had completed and the feedback they are given.

The payments ranged from $100 (£77.51) to a maximum of $10,000 (£7,756) for those drivers who had completed more than 20,000 trips and were of good standing among customers.

The company confirmed that while the payments applied in the UK it was yet to provide details of whether the bonus would be paid in dollars.

It expected to pay out a total of $300m to over one million people worldwide.

2019-04-28T21:09:05+00:00By |

About the Author: