By Rolfe Winkler WSJ Tues., May 14, 2019 Uber Technologies Inc., Lyft Inc. and other big startups going public now have touted their new business models that disrupt old industries but lose historic amounts of money. To try to win over investors, they have also come up with unusual alternatives for measuring their performance. So far, investors aren’t buying it. The ride-hailing rivals have struggled after debuting on the public markets with the two largest-ever 12-month losses for American startups preceding an IPO. Uber, with a $3.7 billion loss in the 12 months through March, priced its shares at the low end of expectations and its stock has fallen about 18% from Friday’s offering price. Lyft, with a loss of $911 million last year, has fallen about 33% since its debut in March. Both companies provide financial measures they say better measure their performance. However, these measures ignore significant expenses. Uber calls this “core platform … [Read more...] about Uber, Lyft get creative, but investors aren’t blind to losses
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A day of strikes planned by Uber drivers in cities around the world drew a modest turnout Wednesday, as protesters denounced the ride-hailing giant’s employment and pay practices before its blockbuster initial public offering this week. In Britain, some drivers, joined by members of other unions, protested at Uber offices around the country. About two dozen protesters outside the British headquarters in East London banged drums; released a smoke flare; displayed banners that read, “Uber sell off: Billions to bosses, poverty pay for drivers”; and chanted, “Uber, Uber, you can’t hide, we can see your greedy side.” In San Francisco, hundreds of protesters blocked the street in front of Uber’s headquarters as a brass band played. They carried signs that said Uber and Lyft, its primary rival in the United States, which went public in March, were “launching IPOs on the backs of their drivers.” And outside Uber’s New York City … [Read more...] about News Uber drivers herald IPO with global strike
By David Olive Business Columnist Sun., May 5, 2019 It appears the Trump administration isn’t all that interested in a deal to replace the North American Free Trade Agreement (NAFTA) after all. Last week, White House acting chief of staff Mick Mulvaney was sanguine about the prospect of Congress rejecting NAFTA’s proposed replacement, the United States-Mexico-Canada Agreement (USMCA). “You could stay status quo,” Mulvaney told a California business conference. “Your real Plan Bs are either NAFTA or withdraw from NAFTA.” It might be that U.S. President Donald Trump has reverted to his years-long preference to simply kill NAFTA without replacing it. Trump won’t budge on the reasonable changes that Congressional Democrats seek to make to the USMCA agreement. He also seems determined to keep in place the steel and aluminum tariffs he applied against Canada and Mexico about a year ago. And that alone pretty much … [Read more...] about Time to say goodbye to NAFTA’s replacement?
Over 9 years, WeWork has grown from one work space in Manhattan into a global empire of trendily designed shared offices, business services and more. Now WeWork is hoping that public investors believe the company can eventually turn a profit from that vision. WeWork announced Monday that it filed confidentially in late December to go public, becoming the latest hot startup to consider heading to the stock markets. Should the company follow through on its plans, its initial public offering would be among the most eagerly anticipated in recent years. It was valued at $47 billion in an investment this year. The company helped take the idea of co-working — where it leases out commercial real estate, redesigns it for shared office space and sells memberships — to a new level of popularity. The business model gained cachet with trendy décor and, in many locations, beer and coffee on tap. But those ambitions have come at a steep cost. The company’s revenue doubled in … [Read more...] about News WeWork files for IPO, joining wave of cash-burning startups going public