Uber Lays Out Risks for Investors

Uber is making sure to cover every last one of its bases before things get into full swing.

Uber officially filed to go public on Thursday. According to Business Insider, the ride-hailing company has released financial and branding information in a 300-page prospectus to investors in the filing.

The prospectus includes a host of useful information regarding the company’s current financial state, the company’s reputation, and potential risk factors. It also includes the standard legally-necessary components, of course. There was a particular mention of the company’s belief that branding and enhancing Uber’s reputation going forward will be critical to the company’s success. The document does also include a fairly standard acknowledgement that they may never become profitable.

These types of prospectuses and warnings are not uncommon when a company approaches the IPO phase. Lyft and Snap have both included similar warnings for legal purposes. These are all signs, however, of a shift in the IPO market. Many big companies are going public without any profits to show, and tech firms have been leading this trend, lending credence to concerns of the dot-com crash. According to University of Florida Finance Professor Jay Ritter, IPOs which are unprofitable are currently as prevalent as they were before the 2000 crash.

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