Ride-hailing platform Lyft will launch the investor road show for its initial public offering on Monday, seeking to raise as much as US$2 billion at a valuation of more than US$20 billion, Reuters reports, citing people familiar with the matter.
Lyft will be seeking to convince investors to make large commitments to its IPO, rather than hold out for its larger rival Uber, which is planning to launch its own public offering next month, the report said.
Lyft will meet with investors across the United States before pricing the IPO and listing on the Nasdaq at the end of the month.
It will be pitching itself as a more focused bet on ride-hailing to differentiate itself from Uber, which has diversified to areas such as food delivery and freight hauling and expanded around the world, sources told Reuters.
Uber is seeking a valuation as high as US$120 billion at its IPO, although some analysts have pegged it closer to US$100 billion based on selected financial figures it has disclosed. Neither Uber nor Lyft are profitable.
Lyft’s IPO will give provide a funding boost as it continues to subsidize rides with promotions to attract passengers. The windfall from the IPO will also help finance investments in areas such as autonomous driving.
The IPO will mark the first time a ride-hailing company has debuted on the US public markets. Lyft launched in 2012 and is led by its founders, Logan Green and John Zimmer.
Lyft will emphasize to investors its rapid growth in the US and its relatively uncomplicated business model, which focuses on selling rides in cars, bikes and scooters, Reuters has reported.
In its IPO filing, Lyft said its US market share has risen to 39 percent, from 35 percent early in 2018, gaining some ground on long-dominant Uber. Unlike Uber, Lyft operates only in North America.
Lyft’s revenue was US$2.16 billion for 2018, double the previous year and up 528 percent from US$343 million in 2016.
But the firm posted a loss of US$911 million for 2018, after a loss of USS$688 million in 2017 and a US$682 million loss in 2016, according to its IPO filing.
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