Lyft is one step closer to going public. The ridesharing company has applied for an initial public offering (IPO) with the US Securities Exchange Commission (SEC). The corporation acknowledged the filing in a statement.
‘The initial public offering is expected to commence after the SEC completes its review process, subject to market and other conditions,’ said Lyft.
Lyft rises to top of 2019 unicorns
Lyft and its ride hailing competitor, Uber, are two of the most prominent unicorns, companies whose valuations top $1 billion. The corporation has been valued at $15 billion. The service has been successful since it launched in 2012. 23 million riders have used the app and the business employs one million drivers. Lyft has always been in second place, but with the latest IPO filing, the corporation has beaten Uber in the race for rideshares to go public.
Lyft has not been profitable with losses equaling $254 million, an increase from last year. However, the company earned $563 million in its third quarter (Q3) earnings, a growth from $300 million in 2017. Many banks assisted the corporation in filing for an IPO, including JPMorgan Chase.
Lyft moving beyond cars
Though Lyft is known as a car sharing service, the company wants to branch out into more diverse forms of transportation. To increase its 35% of its rideshare market, the app purchased Motivate, a bike sharing startup. The corporation plans to brand the alternative transportation division as Lyft Bikes to help customer share bicycles and scooters.
Lyft’s IPO is expected to debut in early 2019. The number of shares and price range of stocks have not been determined.