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Uber sets a lower-than-expected stock price range ahead of IPO

Alyssa Clementi

As Uber prepares to go public next month, the company has set its IPO price range at $44 to $50 a share, which could raise around $10bn for the ride-hailing giant. If all goes well for Uber, its IPO will yield a total valuation of $90bn (£70bn), which is still lower than analysts had originally predicted.

Although Uber will be selling 180m shares to the public, it has reserved around $500m worth of stock for PayPal and has already had 27m shares sold by company insiders. Uber has also begun extending bonuses to its top performing contracted drivers, who can choose to collect cash or invest with company shares.

Earlier this month, Uber released its S-1, which revealed the company’s financials ahead of the IPO. According to the report, in Q1 2019, Uber suffered a net loss of roughly $1bn, even though drivers completed more than 1.5bn trips the first 3 months of 2019. Simultaneous to the financial results, Uber stated that the company could very well never become profitable.

Until the IPO launches next month, Uber will be on a roadshow, pitching to investors around the country. In April, both potential investors and Uber got a taste of what Wall Street really thinks of Silicon Valley tech companies, when Uber’s rival Lyft went public. After a fantastic first morning of trading, Lyft’s stock has continued to plummet in value.

Both Uber and Lyft have been facing a slew of opposition and protests from drivers who say they have been treated unfairly, especially when it comes to wages and benefits. Both ride-hailing apps were also in the spotlight recently after a college student was murdered upon entering a car she thought was her Uber.