Ride Sharing Company Lyft (NASDAQ 🙂 is currently looking for investors as it prepares for an initial public offering. Lyft is expected to come on the market this week, and reports of a large over-subscription to the offer have caused optimism about the market debut.
However, the Lyft IPO can polarize the investment community. In any case, it is a well-known provider of app-based transport, at least in the US and Canada. The filing of its IPO shows stronger growth in gross wages, doubling from US $ 1.06 billion in 2017 to $ 2.16 billion in 2018. In 2018, Lyft drivers generated $ 8.1 billion in fees.
Lyft's corporate vision is high and the IPO document suggests that global transportation markets are about to be transformed, with ownership of the private car almost completely wiped out in 2025. Lyft naturally considers himself a leading role in this transformation
Lyft never made a profit. Losses are even increasing and growing from $ 696 million in 2017 to $ 911 million in 2018. Although this loss growth is approximately one third of the gross profit growth, at least part of this decrease in relative losses is caused by a decrease of the share of drivers in revenue. One interpretation of these figures is that Lyft's ability to ever become profitable depends on the rapid development and delivery of vehicles without drivers
Trading in Lyft's shares after the IPO could therefore become a struggle between believers and cynics. Those who rely on its iconic status and the advance of innovation in technology will compete with those who confuse the numbers and doubt the promise. Although the future of Lyft's business model is still uncertain, fluctuations in the price fluctuations of this wild resistance would be encountered.
Liability: Fusion Media would like to remind you that the information on this website is not necessarily real-time or accurate. All CFDs (shares, indexes, futures) and Forex prices are not supplied by stock exchanges, but rather by market makers, and therefore prices may differ from the actual market price, which means that the prices are indicative and not suitable for trading purposes. Fusion Media therefore does not accept any responsibility for any business losses that you might suffer as a result of the use of this data.
Fusion Media or anyone involved in Fusion Media accepts no liability for loss or damage resulting from reliance on the information including data, quotes, charts and buy / sell signals on this website. Be fully aware of the risks and costs associated with trading on the financial markets, it is one of the riskiest possible forms of investment.
