Uber IPO proposals value company at $120-billion

  • Uber IPO proposals value company at $120-billion

Uber IPO proposals value company at $120-billion

Uber CEO Dara Khosrowshahi talks to FOX Business' Susan Li about the company's IPO plans for 2019, its new safety measures on the app and politics in Silicon Valley.

The proposals from USA banks suggested Uber seek a valuation much higher than the $76bn it was valued at in August during its most recent fundraising round. However, an IPO in early 2019 may prove tempting if Uber wants to steal a lead on smaller rival Lyft, which is thought to be planning its own IPO for March or April.

Uber had always been one of the most valuable startups in the world, until China's Bytedance Ltd. was said to be valued at $75 billion.

As reported by The Wall Street Journal citing people familiar with the matter, Uber has received proposals from Morgan Stanley and Goldman Sachs, which value the ride-hailing company around $120 billion.

The ride-hailing company's most recent valuation was pegged at $76 billion USA, following a $500-million investment from Toyota Motor Corp in August. The two firms declined comment.

Under Khosrowshahi, Uber has moved to boost transparency and become more accountable. It resumed testing in Pennsylvania in July, but with a driver behind the wheel at all times, the company said.

If it does, and at that price, the company would be worth more than Ford Motor Co., General Motors Co. and Fiat Chrysler Automobiles combined.

Separately, Uber rival Lyft had selected JPMorgan Chase as the lead underwriter, a source told AFP.

Lyft was valued at $15.1 billion earlier this year.

The two San Francisco firms have been in a heated race in the U.S. market. Lyft has discussed global plans but so far has expanded only to a handful of cities in Canada.