logo
Plus   Neg
Share
Email

Lyft Files For IPO Ahead Of Uber

lyft-ipo-030419-lt.jpg

Ride-hailing company Lyft Inc. filed paperwork for its initial public offering, a move to beat the larger rival Uber Technologies Inc. in going to public.

Lyft filed on Friday to raise as much as $100 million in the IPO, but the placeholder amount could be updated later. The company intends to list its shares on the Nasdaq Global Select Market under the trading symbol "LYFT".

The company intends to use the money raised from IPO for general corporate purpose including working capital, operating expenses and capital expenditure.

Lyft's IPO is being led by JPMorgan Chase & Co., Credit Suisse Group AG and Jefferies Financial Group Inc.

Lyft's IPO coming ahead of Uber will enable the company to lock up investor money before its rival and also help it to hire IPO bankers. However, both the planned IPOs are shaping up to be among the biggest in a spate of offerings aimed for 2019.

Lyft, which was launched in 2012, noted that its U.S. ride-sharing market share was 39 percent in December 2018, up from 22 percent in December 2016.The company's growth comes from both new drivers and riders as well as increased ride frequency.

For the quarter ended December 31, 2018, the company had 18.6 million active riders and over 1.1 million drivers who provided rides.

For the fiscal year ended December 31, 2018, Lyft's net loss widened to $911.3 million from $688.3 million in the prior year. However, revenue for the year doubled to $2.16 billion from $1.06 billion last year.

Lyft said it reports revenue on a net basis, reflecting the service fees and commissions owed to the company from the drivers as revenue, and not the gross amount collected from the rider.

Lyft also noted that it has a history of net losses and may not be able to achieve or maintain profitability in the future.

In mid-February, the Wall Street Journal reported that Lyft's founders, John Zimmer and Logan Green, plan to take near-majority voting control of the company when it goes public this year.

Other major technology companies, including Google parent Alphabet Inc. (GOOG, GOOGL) and Facebook Inc. (FB), also have supervoting shares that give their founders control of these companies.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT