On Wednesday, on-demand transportation giant Uber Technologies Inc. said that three investors are looking to buy up to $600 million worth of the private company’s stock. At a tender offer of $40 per share, they have valued the Silicon Valleypeer-to-peer (P2P) ride sharing, food delivery and transportation network platform at a whopping $62 billion, roughly 30% higher than the $48 billion set in its latest stock sale in January.
The announcement came along with Uber’s first-quarter earnings report, in which total sales jumped 55% and adjusted losses narrowed 49%. In the first three months of 2018, Uber posted a $2.46 billion net profit, largely attributed to one-time gains from the sale of its Southeast Asia business to rival Grab and the merger of its Russia business with local competitor Yandex.Taxi. Without these deals, the nine-year-old sharing-economy behemoth lost $304 million before taxes and depreciation, compared to a $597 million loss posted over the same period last year. (See also: Musk: Offering $35K Model 3 Now Would Kill Tesla.)
Ride Hailing Leader Still Losing Money, But Half of Last Year
While Uber is still operating at a loss, the company reported a sharp spike in gross booking and revenue. In the quarter ended March, Uber generated net revenue of $2.5 billion, up 67% year-over-year (YOY), on gross sales of $11.3 billion. Investors expect Uber’s momentum to continue, eventually turning its red ink into black as it explores new segments such as bicycle sharing, doubles down on its food delivery service Uber Eats and explores its self-driving car project despite recent woes.
In a statement, Uber said that new and existing investors Coatue Management, Altimeter Capital and TPG have offered to buy between $400 million to $600 million worth of Uber stock, which would allow investors and some employees to convert shares to cash ahead of a planned initial public offering (IPO) slated for sometime in 2019. In January, a group of investors led by Japanese tech conglomerate SoftBank Group Corp. closed on a deal to acquire 15% of Uber in a deal worth north of $9.3 billion and which priced shares at $33 a piece.
Uber heads off against a growing number of competitors including U.S. rival Lyft, Chinese leader Didi Chuxing, a growing number of niche startups, as well as deep-pocketed tech giants such as Alphabet Inc. (GOOGL) and Apple Inc. (AAPL). (See also: Google and Uber: From ‘Brothers’ to Enemies.)
Featured Image: Getty Images
Inset Image: AP Photo/File