PayPal Invests $500M in Uber Ahead of IPO to Expand Payment Partnership

PayPal Invests $500M in Uber Ahead of IPO to Expand Payment Partnership

Uber Technologies Inc. finally could reveal details of its forthcoming initial public offering Friday, with reports suggesting that it will price its shares at between $44 and $50 each.

At the top of the range the listing would value Uber at nearly US$84 billion, based on the number of shares outstanding after the offering, as detailed in the filing.

Uber Technologies, the greatest of all unicorns, dropped its valuation, as the ride-sharing company begins a roadshow to sell its shares to the public. Lyft, which was the first ride-hail company to go public, was valued at $24 billion at its IPO, but its share price has slumped from $72 to $56 in the weeks since.

The IPO document said Uber aims to disrupt transportation by making it easier for consumers to move about without private cars.

Uber gave potential investors a first look at its finances this month, revealing almost $8 billion in losses over a decade. PayPal Holdings Inc. will buy roughly $500 million of shares via a private placement at Uber's IPO price, the Wall Street Journal cited unidentified people as saying.

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The entrance sign to the Uber Greenlight Hub is seen in the Brooklyn borough of New York, US.

Uber has become the largest ridesharing platform but has also been expanding into new segments including food delivery, freight, and "last mile" transport using electric bikes and scooters.

Uber's public filing comes just a month after its much smaller North American competitor Lyft ($LYFT) made its public debut on the Nasdaq. "There is no doubt that Lyft is a factor in Uber's valuation".

"If it can get riders to significantly increase usage (either in the form of more rides or other add on services), it can find a way to justify a value that exceeds $100 billion". At the high end of Uber's range the sale could net the firm $287 million.

Uber is reserving some shares in the IPO for some of its most active and best-performing drivers, including those who have completed at least 2,500 trips.