Uber’s London taxi rival will cost you peanuts

FILE- In this June 21, 2017, file photo a man walks into the building that houses the headquarters of Uber in San Francisco. Documents released Thursday, April 11, 2019, offered the most detailed view of the world’s largest ride-hailing service since its inception a decade ago. (AP Photo/Eric Risberg, File)

UBER Technologies Inc’s initial public offering next week will be a bittersweet moment for private equity giant Carlyle Group and its London minicab firm Addison Lee Holdings Ltd.

Uber will almost certainly join its fellow ride-hailing company Lyft Inc in securing a nosebleed market value, despite making heavy losses. The investor buzz could benefit Carlyle as it looks to exit from its own unprofitable taxi operator. Unfortunately, fierce competition from Uber is also a big reason why Addison Lee has been such a difficult investment for Carlyle’s ?5.4bil (US$6bil) European buyout fund.