Uber CEO Dara Khosrowshahi. Photo by Bloomberg
Uber/Lyft

Uber Makes Big Promises in IPO ‘Road Show’

Photo: Uber CEO Dara Khosrowshahi. Photo by Bloomberg

Uber CEO Dara Khosrowshahi and CFO Nelson Chai have told investors attending the company’s IPO road show presentations that they expect the company to one day earn a profit margin of 25%, before the impact of interest, taxes, depreciation and amortization after “competitive pressures” subside, according to two people attending presentations and a video shown to prospective investors. That’s a far cry from where things stand today: Uber had a negative margin of 31.4% in the first quarter.

And the executives revealed that Uber this year will lose more money, before interest, taxes, depreciation and amortization, than the $1.8 billion it lost in 2018. The increased loss will reflect its heavy spending on subsidies for drivers and coupons for riders in order to protect its market share. A year ago, Uber had projected it would shrink its Ebitda losses this year by two-thirds, to $500 million. Increased competition in ride hailing and food delivery have changed that.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Exclusive Asia Apple
Inside Apple’s Eroding Partnership with Foxconn
Inside Apple’s Eroding Partnership with Foxconn

When Apple’s 2018 iPad Pro was undergoing production trials at the company’s largest outside manufacturer, Foxconn Technology, the Taiwanese firm gave Apple a list of how many workers it needed to develop the new product. That was standard procedure for Foxconn, whose factories across China have been responsible for assembling the vast majority of Apple’s hardware for nearly ...

Latest Briefs
 
T-Mobile Launches Streaming Video Service
Google and YouTube Outline Plans For Next Week’s U.S. Elections
Senate Democrat Wants Google and Facebook to Pay for Local News
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Katzenberg May Shut Down Quibi as Options Run Short
Exclusive
Katzenberg May Shut Down Quibi as Options Run Short
Jeffrey Katzenberg may be nearing the end of the road with his mobile video streaming service Quibi.
Quibi to Shutter in Stunning End to Ambitious Venture
Quibi to Shutter in Stunning End to Ambitious Venture
Jeffrey Katzenberg’s video streaming service Quibi is shutting down, said a person familiar with the situation, bringing down the curtain on the short-form video streaming service just six months after it launched.
The Investors Who Face Big Losses From the Quibi Collapse
Exclusive Venture Capital Startups
The Investors Who Face Big Losses From the Quibi Collapse
On Wednesday, video startup Quibi told its investors that it will shut down, a dramatic collapse of a digital media startup that launched just six months ago.
The Startup Trap Quibi Fell Into (and I Almost Did Too)
The Takeaway
The Startup Trap Quibi Fell Into (and I Almost Did Too)
This week, Tom and Jessica broke the news that Quibi founder Jeffrey Katzenberg had told people the video startup might have to shut down and then—a day later— reported the shutdown officially.
The SPAC Target List: Private Tech and Media Firms in Their Teenage Years
The SPAC Target List: Private Tech and Media Firms in Their Teenage Years
A dozen private tech and media firms, ranging from BuzzFeed to Getaround, have been left behind in the initial public offering surge of the past two years.
Quibi’s Short Life and Sudden Death: The Information’s Tech Briefing
The Briefing
Quibi’s Short Life and Sudden Death: The Information’s Tech Briefing
The sudden death of Quibi, the short-form video streaming service launched by Hollywood veteran Jeffrey Katzenberg six months ago, is sure to generate plenty of “I-told-you-so’s” from people in the entertainment and tech industries.