Lyft files initial paperwork for IPO

By hotmaillogin

The second-largest ride-sharing company in the US, Lyft, has officially filed paperwork for an Initial Public Offering (IPO) this week, beating rival firm Uber Technologies, which will give the smaller firm “a key advantage”, Business Insider reports.

Santosh Rao, head of research at Manhattan Venture Partners, told Business Insider that Lyft "will definitely get the benefit of the doubt.” He also admitted that “no one knows how to value these companies. Is it a software company? Is it a car company? Is it a service?"

Lyft’s was last valued at US$15bn in a private fundraising round, Reuters reports. Although it “did not specify the number of shares it was selling or the price range in a confidential filing with the US Securities and Exchange Commission”.

According to Reuters, Lyft could use its IPO to go public as early as Q1 2019. Considering the San Francisco-based startup only began arranging banks for its transition to public as late as October, Business Insider reports, the entire process could be engineered in as little as four months, depending on how fast the US Securities and Exchange Commission processes the request.

See also: 

 

Although “both Uber and Lyft are deeply unprofitable, with quarterly losses for both companies in the hundreds of millions”, this is not uncommon for publically traded companies. With Uber also planning an IPO (with a target valuation of $120bn), the two dominant companies in the US ride sharing market could enter “a race for profitability”.

Despite this, Lyft continues to expand. Business Insider reports that “not content with its roughly 35% market share in the US, Lyft has also been branching beyond traditional ride hailing as it seeks further growth. Last week, its acquisition of Motivate, the country's largest bike-share operator, officially closed. The purchase adds bikes and scooters in most major cities to its arsenal, now known as Lyft Bikes.”

“Lyft’s valuation is likely to end up between $20 billion and $30 billion”, a Reuters source estimated, and “would follow a string of high-profile IPOs of technology companies valued at more than $1bn this year, such as Dropbox Inc and Spotify Technology SA.”

 

Share

Featured Articles

PwC's Kathryn Kaminsky – the role of boards on social issues

As Vice Chair Trust Solutions Co-Leader at PwC, Kathryn Kaminsky says boards play an important role in helping businesses take action on social issues

Why your business needs a Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 top AI and ML trends for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

From NYC to Hong Kong, the rise of the private members' club

Leadership & Strategy

Meet the CEO: Jill Stelfox of Panzura, exclusive interview

Leadership & Strategy

The best Michelin-starred restaurants that are meat-free

Sustainability