Lyft earlier than Uber on the stock market: nine points to understand the infatuation of investors


It is the return of the stock market introductions in fanfare! 2019 will see big names in the US digital landscape go public.
March 25th Lyft starts the movement. The platform picks up its great rival Uber, likely 4 or 5 times better valued, and aims for a raise of $ 2 billion.
Nine point to understand:
1 – Lyft was launched in 2012, three years after Uber. The company is present today in 65 countries. Launched in the VTC (Chauffeur Driven) market, after leader and pioneer Uber, Lyft has diversified into sharing bikes and scooters and is investing in autonomous cars. Lyft’s mission is to improve people’s lives through the best of transportation
2 – The company achieved $ 2.2 billion in 2018 for 8.1 billion bookings
3 – A highly successful urban passenger transport market: in 2012 it was 99% constituted by taxis, since, taxis represent 12% and VTC 88% in the United States
4- Lyft has 1.9 million drivers in 2018. According to Lyft they would have received $ 10 billion in 1 billion trips
5 – Gig economy: like its competitors, Lyft has experienced driver movements, complaining about working conditions, including insufficient revenue sharing. It should be known that for a driver the costs are high, the only insurance budget can reach cost 30% of revenues. Some claim the status of employee.
6 – Better reputation than Uber. Uber has experienced various scandals, including the personality of its founder Travis Kalakanis, forced to resign, and cases of harassment within the company. Lyft, still led by its founders, maintains this reputation, playing especially on its smaller size against Uber, and to stay on a line of goodwill is committed in its prospectus to invest 1% of profits (for now no existing ) or to pay $ 50 million a year in social impact actions
7 – American duopoly: According to Second Measure, Lyft occupies 28% of the US market, compared with 71% for Uber 61%. Will term competition be global? The Chinese market is for example dominated by Didi, backed by Tencent and Alibaba, and in which Apple invested in 2016 a billion dollars
8 – Faster than Uber: Lyft is quicker to go public than Uber. It is also ahead of many other former startups, who have become big names, whose market introductions are expected this year: Pinterest, Wework, Slack, Postmate, Airbnb in particular. They will be forced to be more transparent, whereas so far the financial analysts blame them for not communicating anything about their figures. The question of profitability was rightly raised.
9 – Not really profitable, and yet so attractive. The prospectus released a month ago reveals that the losses have continued to worsen, they reached in 2018 the abyssal figure of 911 million dollars. New bubble on the horizon? The financial situation does not slow investors, quite the opposite: Lyft was able to raise the purchase price to 70-72 dollars, the day of its introduction on March 29, 2019. Investorsfollow, many take the Amazon example not or little profitable for many years, before becoming the first capitalization last year. Lyft is aiming for a $ 2 billion raise.

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