Skip to main content

Analysis

Uber Registers for IPO, Eyes Healthcare Play

By Jack O'Brien  
   April 11, 2019

Less than two weeks after Lyft went public, Uber filed for an IPO with an aim on entry into healthcare.

Uber Technologies Inc. filed its form S-1 Thursday, a major step towards its much-anticipated initial public offering (IPO) and another indication that the company remains set on competing in healthcare.

The ridesharing giant's filing comes less than two weeks after one of its primary competitors, Lyft Inc., went public on Wall Street. Lyft secured more than $2 billion on its first day offering.

Uber expects to sell approximately $10 billion worth of stock during its IPO set for some time in early to mid-May.

As Lyft did in its S-1 filing, Uber indicated it will be pursuing further expansion into the healthcare sphere by providing affordable, reliable transportation options for patients.

Related: Lyft Details Healthcare Risks and Opportunities Ahead of IPO

Uber Health, launched in March 2018, has been the primary vehicle for the ridesharing giant to partner with healthcare organizations.

The service, similar to Lyft's Concierge feature, allows health system employees to arrange rides for patients and integrate the function into existing workflows.

The HIPAA-compliant division is headed by Dan Trigub, who worked for Lyft as regional vice president of healthcare partnerships, before being brought on in December.

According to the company, more than 100 healthcare organizations have utilized Uber Health during its beta program and there is hope that that more are likely to embrace ridesharing for patient needs going forward.

The Texas state legislature is currently considering a bill, HB1576, that would expand the ability for ridesharing companies to transport Medicaid patients to and from appointments.

Ridesharing competitor Lyft has already established partnerships with health systems across the country as it seeks to make inroads as a reliable, affordable option for patient transportation.

Related: Lyft, Oak Street Health Launch Indianapolis Initiative

In S-1 filings, companies must provide a comprehensive overview of business operations, including any potential risk factors to the enterprise as it prepares to be publicly traded.

Uber admits in its filing that it will be subject to "additional healthcare-related federal and state laws and regulations" as a result of going public and aiming to expand into the healthcare sphere.

Related: Know the Risks When Using Uber Health, Lyft

Correction: A prior version of this article stated that Aaron Cromwell was the head of Uber Health. Cromwell has left the company and Dan Trigub is serving as head of Uber Health.

Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.

Photo credit: WROCLAW, POLAND - DEC 13,2017 : Uber logo on Huawei P9. Uber is sharing-economy service for ubran transport. - Image / Editorial credit: Proxima Studio / Shutterstock.com


KEY TAKEAWAYS

Following a few weeks after Lyft went public, Uber filed for its long-awaited IPO.

Healthcare remains part of the ridesharing giant's forward-looking strategy.

Uber Health, utilized by more than 100 healthcare organizations, is the centerpiece of its healthcare play.


Get the latest on healthcare leadership in your inbox.