Lyft is now playing up the power of its brand in its pitch to investors to keep gaining momentum. It is, essentially, the only app around for ride-hailing in the capital.
"In a good market, people look beyond things". Indeed, Lyft has acknowledged it may be many more years before it starts making money, especially if its efforts to lower costs by developing a fleet of self-driving cars don't pan out. But it was still able to manage to profit in terms of revenue up to a total of $2.2 billion, some of the highest ever of any company before going public.
LOS ANGELES/NEW YORK - Lyft Inc's shares opened up more than 20 percent in their market debut on Friday, giving the ride hailing startup a market value of more than $27 billion, amid strong investor demand that bodes well for larger rival Uber Technologies Inc.
"While profitability is key", said Wedbush analyst Dan Ives, "we expect more driver incentives to be offered by Lyft over the next few years as the company need to expand its drivers and peak house in the United States, especially with Uber aggressively going after this market in major cities".
Lyft priced its initial public offering at $72 a share on Thursday, valuing the company at around $24 billion. "We know the road ahead comes with both massive opportunities and genuine challenges", he said.
Unlike Uber, which has developed its own self-driving division, Lyft has chosen to strike partnerships to expand in the sector, including with auto parts suppliers Magna International Inc and Aptiv Plc.
Analyst Richard Windsor, who writes the tech blog Radio Free Mobile, argues that Lyft may not be ready for the scrutiny it will face as a publicly-traded firm. "Lyft launched in 2012, and has embarked on a mission to improve lives with the best transportation, and ride-by-ride, you are helping to reimagine how our cities can be built around people, not cars". Autonomous vehicles and regulations also pose a threat. It paves the way for other Silicon Valley companies seeking to float in the stock market this year, including Pinterest Inc, Slack Technologies Inc and Postmates Inc.
Beyond solidarity for these specific actions, this employee also backs several of the proposals RDU is agitating for, including fair pay, transparency, an end to the contractor model that strips drivers of basic employee rights, and the ability to have a voice in the boardroom.
Logan Green: 684,591 class A shares and class B shares worth $655.5 million at IPO prices. "It creates an appeal for investors who want to get in on the ride-share economy without resorting to the scandal-ridden Uber", Blankenship said. The co-founders opted to host the IPO in Los Angeles, which happens to be the company's largest market.