Uber reportedly worth more than Ford, GM, Tesla–combined
Last Updated Oct 16, 2018 12:50 PM EDT
With Uber expected to go public next year, banks are valuing the company as high as $120 billion, the Wall Street Journal reports. That’s nearly double and roughly equal to Ford, GM and Tesla combined.
Uber’s IPO would be one the largest in history, but it continues to hemorrhage money. The company lost $800 million in the third quarter, following a $1.2 billion loss in the first half of the year, according to reports. It would likely need to narrow those losses before staging in initial public offering.
Reuters calculated that, after paying driver costs, passenger promos and other fees, Uber keeps about 23 percent of each transaction.
An Uber spokesman declined to comment.
The company needs to go public by the end of 2019 under terms of an agreement with Japanese conglomerate SoftBank, a major investor. Its smaller competitor, Lyft, is also reportedly gearing up for an IPO next year.
Boosting Uber’s valuation is the company’s stake in other ride-hailing services, including Didi Chuxing in China and GrabTaxi in India. Food-delivery service UberEats also operates in about 500 cities worldwide and is valued at nearly $20 billion, the Journal reported.
Uber’s sky-high valuation hasn’t insulated it from a public-perception problem in some cities, where it is blamed for increasing traffic congestion and lowering taxi drivers’ earnings. In August, after a spate of taxi-driver suicides, New York City imposed a temporary cap on new drivers joining the platform.
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