Lyft
Both Uber and Lyft submitted documentation for their going publics on the exact same day in December. But now it appears Lyft is attempting to pull ahead of its competitor and struck the stock market initially.
The ride-hailing business is supposedly preparing its IPO for completion of March, according to a Wall Street Journal report pointing out individuals acquainted with the matter. Lyft is stated to be noting its shares on Nasdaq.
Lyft is the smaller sized of the 2 ride-hailing business, and experts state it would succeed to go public initially, so as not to be eclipsed by Uber.
“Lyft isn’t nearly the size of Uber, so listing their shares earlier could grab the spotlight in a way that would have been difficult afterwards,” stated Elliot Lutzker, a partner at Davidoff Hutcher & Citron who deals with business preparing to go public. “In addition, Lyft might have concerns that instability and controversy at Uber could impact that company’s IPO and affect the price of Lyft shares. Listing their shares first avoids both potential problems.”
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CES 2019: Ride along with us in an autonomous Lyft
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While the two companies offer the same service, hailing a ride with a smartphone app, it’s expected each one will point potential investors to different aspects of their businesses. Uber will reportedly showcase itself as a global company with diverse features such as food delivery and flying cars. Lyft, with services only in the US and Canada, is said to be focusing on being a stable transportation company.
“Unlike Uber, Lyft is focused primarily on the US ride-sharing market, and presents a much cleaner growth story to investors wary of Uber’s forays into lower-margin international markets and other untested markets such as food delivery,” said Asad Hussain, emerging tech analyst at investment research firm PitchBook. “Although we recognize the growth potential for Uber’s business, we remain more confident in Lyft given its more focused business model.”
Lyft is reportedly expecting to be valued somewhere between $20 billion and $25 billion when it goes public, according to Reuters. When Uber has its IPO, its valuation is estimated to be as high as $120 billion, but the company still needs several more weeks to prepare to go public, Reuters said.
Both Lyft and Uber declined to comment.
First published Feb. 20 at 3:08 p.m. PT.
Update Feb. 21 at 10:00 a.m. PT: Adds comments from attorney Elliot Lutzker and market analyst Asad Hussain.
