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 Autonomous Vehicles Asia
Didi Chuxing Aborted $1 Billion Acquisition of Aurora Amid Concerns of U.S. Officials
A Didi Chuxing autonomous car on display in 2019. Photo by Bloomberg.
After defeating Uber in China’s brutal ride-hailing war in 2016, Didi Chuxing had an even more ambitious goal: Win the global race to develop robotaxis. A year later, Didi quietly struck a $1 billion deal to acquire Aurora Innovation, the high-profile self-driving-car firm led by Chris Urmson, a pioneer in the field who started Google’s autonomous car program, now called Waymo....
Latest Briefs
 
Beijing Tightens Control Over Ant Group in Major Restructuring
Microsoft to Buy Nuance Communications for $16 Billion
More Than 100 Chinese Startups Withdraw IPOs From Domestic Stock Markets
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.
From left, Chase Coleman III, Scott Shleifer, and John Curtius. Photos by Bloomberg. Art by Mike Sullivan
Exclusive Venture Capital Startups
Inside Tiger Global’s Deal Machine
In early 2018, Tiger Global Management hired retired U.S. Army colonel Greg Gadson to speak at the hedge fund’s offsite conference at Miraval, a luxury resort and spa in Arizona’s Sonoran Desert.
Illustration by Jesus Escudero.
Venture Capital Startups
Want a Piece of Stripe and SpaceX? Find an SPV
When Khosla Ventures in February wanted to sell part of its stake in Stripe, one of the hottest private tech companies in the world, the shares ended up being auctioned in an opaque process.
Podcast
Tech’s Tiger King — The Information’s 411
Cory talks to Kate Clark about the new king of venture capital deals: Tiger Global Management. The New York hedge fund has invested at a rapid pace, at higher and higher valuations.
A screenshot of a recent Snapchat augmented reality feature that lets users virtually try on Gucci sneakers. Photo provided by Snap
Exclusive Startups Facebook
Snap Acquires Screenshop App to Fuel Shopping Push
Snap is planning a bigger push into online shopping with a new feature in the Snapchat app that will recommend clothes users can buy based on photos they upload to the messaging app , according to two people with knowledge of the matter.
A promotional image provided by Greenlight
Exclusive Venture Capital Startups
Kid Debit Card Startup Greenlight Valued at $2 Billion in Andreessen-Led Round
Andreessen Horowitz is leading a new round of funding in Greenlight Financial Technology, a startup that offers debit cards meant for children, at a $2 billion valuation, according to two people familiar with the deal.
Travelers with their suitcases at a check-in counter at Munich airport. Photo by AP.
Venture Capital Travel
Fortunes Begin to Turn for Sonder and Other Travel Startups
Last March, Sonder was in dire straits. The startup, which rents furnished, hotel-like apartments to travelers, laid off nearly a quarter of its staff, slashed room prices and looked to terminate some of its leases as Covid-19 brought travel to a near halt.