Everything is going as expected. Uber and Lyft are approaching the finish line for public offering.
Uber and Lyft are currently the largest two vehicle calling companies in the market and both companies are offered to the public in 2019. This reality became clearer now.
Last week, on 6 December, Lyft announced that it had secretly submitted its public offering documents to the US Securities and Exchange Commission (SEC). Lyft did not disclose any details as to how much share it would offer or the price range of the stock.
Last June, Lyft had a value of $ 15 billion in a recent round of financing led by Fidelity. The company is estimated to double its value two months ago.
Both Lyft and its rival Uber excite investors. These two companies are among the largest and fastest growing private companies in the US. Investors have been waiting for both Lyft and Uber to be offered to the public for a while.
Uber didn’t want Lyft to take on all roles, so on the 7th of December, a day after Lyft, he publicly disclosed to the SEC that he secretly offered the public offering documents. And it’s finally happening. Two of the largest and most anticipated technology companies are entering the stock market in 2019.
What do we know about Uber and Lyft?
Lyft’s value is much smaller than Uber and its annual turnover is less than $ 1 billion. However, Lyft has several financial indicators that draw attention. In January 2016, General Motors invested $ 500 million in the company. And earlier this year, Lyft reached a value of $ 15 billion. Obviously, Lyft Uber does not have as high a value (Uber’s value of $ 120 billion), but his rapid growth seems to compensate for this situation.
Some people look at Uber suspiciously because the company is not profitable right now. In the third quarter of 2018, the company reported a loss of $ 1.07 billion. In addition, Uber had a tough year in which the driverless vehicle killed a person and suffered problems within the company.
Uber’s CEO Dara Khosrowshahi took up the post in August 2017, focusing on eliminating the parts of the Uber that caused cash shortages. Faced with heavy competition from competing companies, Russia also sold operations in Southeast Asia.
Uber also turned to expanding their business by entering potential high growth areas, such as food distribution, bike and scooter rental.
Uber me, Lyft me?
By October 2018, Uber owned 69% of the US market, while Lyft had 28% of the market. Uber holds a big part of his market share, but Lyft is definitely looking for it.
According to a survey conducted by investment company Raymond Jones with US consumers, Lyft’s customers are more often used than Uber’s customers.
Since Lyft customers are more loyal and Uber customers are more likely to choose Lyft, Lyft seems to be able to get some of Uber’s market share. No matter what we look at, this is a battle!
Investors have been interested in both Lyft and Uber for some time, so the two companies will have a large demand. At the same time, these IPOs will be important milestones that will determine the fate of both companies in the coming years.