If, as a result of legislation or judicial decisions, we are required to classify Drivers as employees (or as workers or quasi-employees where those statuses exist), we would incur significant additional expenses for compensating Drivers, potentially including expenses associated with the application of wage and hour laws (including minimum wage, overtime, and meal and rest period requirements), employee benefits, social security contributions, taxes, and penalties.
But the prospectus renewed questions about how sustainable Uber's business actually is.
Uber released its IPO filing, and it is seeking to raise $1 billion.
The S-1 filing underscores Uber's rapid growth in the last three years but also how a string of public scandals and increased competition from rivals have weighed on its plans to attract and retain riders.
Although Uber has not announced its official price range per share, the company has already raised nearly $20bn in investment rounds, totaling Uber's valuation at nearly $120bn.
Uber lost $3.03 billion in the past year from operations.
Lyft beat Uber to the stock exchange last month with an IPO that raised $2.3 billion, but its shares have been backsliding following an early run-up.
In the end, Uber is broadly expected to be the largest tech IPO since Chinese e-commerce giant Alibaba Group went public in 2014.More news: Saudi Arabia Backs Sudanese Military Council, Vows Aid Package
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There has been much excitement over the potential of unicorn businesses, those privately owned tech startup companies valued at more than $1 billion. The company said it sustained an operating loss of $3 billion.
Uber launched as a vehicle service where customers are able to hail drivers with a couple taps on a smartphone as UberCab, in 2009.
When offering ways to get around with scooters and bicycles uber is growing in other markets such as cargo.
But Uber faces challenges that Lyft doesn't because of a series of revelations that sullied its reputation. The setbacks have contained uncontrolled sexual harassment and allegations it destroys self-driving vehicle technology.
The blowback from the problems helped Lyft pick up ground in the USA - something Uber acknowledged in its filing - and led to the ouster of Uber co-founder Travis Kalanick as CEO in 2017. Now it'll be up Dara Khosrowshahi, to Kalanick's successor, to convince investors who Uber has cleaned up its act and merits a market value higher than Ford Motor and General Motors combined.
Cayman, a subsidiary of Softbank, is Uber's biggest shareholder with 16 percent.
Uber has been investing substantially in self-driving vehicles, which could be critical to reducing driver costs and achieving profitability. But revenue in 2017 had more than doubled from 2016. The company resumed testing self-driving automobiles. Additional regulation of our pricing model could increase our operating costs and adversely affect our business.
Alphabet, the parent company of Google, owns 5% of Uber, even as it competes with Uber on self-driving technology. Officials also possesses approximately 5 percent of Uber equal Lyft's inventory.