Ride-hailing giant Uber seems to be underpromising in hopes of overdelivering when it goes public as early as next month. The company said in a regulatory filing it plans to sell 180 million shares in the initial stock offering for between $44 and $50 apiece. That values the company at $80 billion to $90 billion, lower than previous estimates of as high as $120 billion.
Uber also disclosed that PayPal, the eBay-owned online payment service, has agreed to buy $500 million in stock when the company goes public.
One factor that may have spurred Uber to ratchet back expectations -- a rocky first month for rival Lyft. Before the start of trade on Friday, Lyft shares were down 28 percent from their March 29 opening price of $72.
Uber gave potential investors a first look at its finances this month, revealing nearly $8 billion in losses over a decade. But it also showed impressive growth. Revenue from its core ridesharing business grew from $3.5 billion in 2016 to $9.2 billion in 2018, according to its filing. Gross bookings over that period more than doubled to $41.5 billion.
The company also sees potential for much more growth. As of the end of 2018, only 2% of people in the 63 countries where Uber operates used its services, Uber said.
For now, Uber continues to bleed cash. It lost roughly $1 billion in the first quarter of 2019 on revenue of about $3 billion.