This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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.