After having numerous tech unicorns debuting in 2018, the trend is being kept alive in 2019 as well, so many investors are anticipating some of the most interesting initial public offerings by far, one of them being Uber, the ridesharing giant with majority of market share in the sector of ridesharing business.
As Lyft already took off in a debut that took place at the end of Q1 2019, on March 29th, starting from the initial price of 72$ per share and raising 2.3 billion dollars, many investors and watchdogs are wondering whether Lyft’s early debut will stand in the way of Uber’s IPO that should come weeks after Lyft went public.
Can Lyft Performance Affect Uber IPO Share Price?
As many people with knowledge on the matter agree that Uber IPO will be challenged to prove that the company is young enough to be able to justify billion-dollars losses year to year, and yet again mature enough to become a publicly traded company.
Even though the challenge is huge as Uber reported around 3 billion in operating losses for the previous year of 2018, the company is said to be one of the most anticipated IPOs by far, having Uber valued between 90 and 100 billion dollars, with the initial estimate of 120 billion dollars prior to filing S-1.
Uber also has an advantage in oppose to Lyft when it comes to diversity in services, as the company managed to generate 1.5 billion in additional revenue in 2018 through their food delivery service, UberEats, recording 149% of growth year to year.
While Lyft may have earned an advantage by going public earlier than Uber, the company raised 2.3 billion dollars against Uber’s plan to raise around 10 billion dollars in the initial sale.
If anything, Lyft managed to showcase that there is a great interest for the ridesharing sector, while Uber announced getting listed on NYSE instead of Nasdaq where Lyft began their first trade.