While Uber is leading in value estimates, representing one of the biggest upcoming public offerings with 120 billion dollars-worth IPO in accordance with estimates provided by JP Morgan and Goldman Sachs, Lyft appears to be attracting a great dose of interest among investors as it is biting into Uber’s market share.
The Wall Street Journal: Lyft to Price Shares Above Targeted Range of $62 to $68 in IPO
Intense interest in Lyft’s initial public offering likely means the ride-hailing service will price its shares above the targeted range of $62 to $68, reports The Wall Street Journal, citing anonymous people. While the exact share price is unknown, it will likely fall below the $80, per the Journal. Any increase shows strong demand in Lyft despite uncertainty about the company’s path to profitability. It’s slated to begin trading Friday on the Nasdaq under the symbol LYFT.
CNBC: Lyft ups expected IPO price to between $70 and $72 a share
Intense interest in Lyft’s initial public offering led the ride-hailing service to price its shares between $70 and $72, reports CNBC — above the previously expected target of between $62 and $68. The increase shows strong demand in Lyft despite uncertainty about the company’s path to profitability. The company is slated to begin trading Friday on Nasdaq under the symbol LYFT.
- Lyft increased its expected share pricing in a new filing Wednesday.
- The company is expected to price its shares on Thursday and go public on Friday.
- Lyft is one of several tech companies expected to go public this year, including its chief rival Uber.
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Lyft is a case study in transforming the transportation
Eric Kim, Co-Founder and Managing Partner at Goodwater Capital:
Lyft is a case study in transforming the transportation market by developing an authentic, values-driven brand and leveraging advantageous market dynamics.
Lyft’s IPO promises to be one of the biggest initial public offerings of 2019
Gary Mishuris, CFA, Managing Partner, Chief Investment Officer at Silver Ring Value Partners:
Lyft’s IPO promises to be one of the biggest initial public offerings of 2019. It is already oversubscribed, and could fetch a valuation of over $20 billion. Lyft is a high-growth business. It is an exciting “platform” company that is perceived to be very attractive. Yet the principles of fundamental analysis and value investing apply to all companies, no matter their growth rate or brand sizzle.
Lyft has its eyes on the future with autonomous vehicles
Joshua Fruhlinger, Publisher at Thinknum, Writer for Wall Street Journal, Columnist for The Observer:
This is a good sign for (potential) investors. Lyft has its eyes on the future with autonomous vehicles, and is even hiring legal experts to lock down the technology in terms of compliance.
Ahead of IPO, Lyft is offering debit card to drivers
Rob Wile, Reporter at Miami Herald Media Company:
Ahead of IPO, ride-share giant Lyft is offering new perks to drivers. One is a debit card
One of the biggest losers amongst U.S. startups
Jorge Araujo Muller, Digital Entrepreneur in BCN:
Lyft´s IPO continues – let´s see how the market reacts.
- Lyft posted losses of $911 million in 2018, a statistic that will make it the biggest loser amongst U.S. startups to have gone public.
Largest annual revenues for a pre-IPO business
- On the other hand, Lyft’s $2.2 billion in 2018 revenue places it atop the list of largest annual revenues for a pre-IPO business, trailing behind only Facebook and Google in that category.
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Sixty-four percent of the 100+ companies valued at more than $1 billion to complete a VC-backed IPO since 2010 were unprofitable.
Profitability doesn’t seem to matter anymore
Joshua R., Digital Technology Executive:
I’ve been wondering why profitability doesn’t seem to matter anymore. It seems that revenue expansion is what matters – and that is really not so hard because you can buy revenue.
Let year over 80% of IPOs were from unprofitable companies and this year, we will see this trend continue with Lyft, Uber, AirBnB, Pinterest among others all lining up to IPO.
This isn’t going to end well. Market fundamentals always rule put in the long term. That said, tons on money is set to be made from first days gains on the upcoming IPIOs…
Lyft VS Uber IPO: Which IPO Will Win the Race?
Although more than several startups have announced going public in 2019, which includes prominent tech companies such as Airbnb, Pinterest and Palantir, the rivalry between the upcoming Lyft IPO and Uber IPO appears to be the most talked about topic when it comes to expecting new IPO arrivals in 2019.
While Uber is leading in value estimates, representing one of the biggest upcoming public offerings with 120 billion dollars-worth IPO in accordance with estimates provided by JP Morgan and Goldman Sachs, Lyft appears to be attracting a great dose of interest among investors as it is biting into Uber’s market share.
Lyft vs Uber: Ridesharing Startups Competing with the Upcoming IPOs in 2019
What provides Lyft with a slight advantage is the fact that the IPO of this ridesharing company will be out already by the end of March, while Uber yet has to confirm the exact date of the issuance of their IPO.
However, while Lyft is valued at 2.2 billion dollars ahead of its IPO, Uber is said to have been evaluated at 120 billion dollars, 50 billion over the initial estimated value after announcing IPO preparation, potentially making it the biggest listing the market have seen by far.
At the same time, while Uber is present on the international level, outside US and in Europe, Lyft is operating only in the US and Canada, which can be a great advantage for Lyft as the company may focus on widening their share in the US market. According to Lyft and the third-party sources they have provided within their report, Lyft makes up for 39% of market share in ridesharing industry, which witnesses how fast Lyft is growing.
With the upcoming IPO, Lyft will be able to get an advantage in oppose to the ridesharing giant, Uber, despite the fact that the value of Uber’s IPO stands at 120 billion dollars.
