Lyft files for IPO, to kick off roadshow later this month

Drivers can be owners too.                  Getty Images

Lyft, the second-largest ride-hailing operator, took the opportunity to remind the public of its longtime marketing angle: It's a kinder and more empathetic company.

But the company has been operating with heavy losses.

Lyft now has almost 40 percent of the USA ride-sharing market, but warned further growth could come at the expense of yet more losses for a company already deep in the red, according to the filing.

Issuing stock also generally doesn't cost companies money like cash bonuses do. So what did we learn about Lyft with today's filing? In 2017, it was losses of $688 million on $1.1 billion, and past year, the company lost $911 million on $2.2 billion in revenue.

Lyft, known for the pink moustaches that used to adorn vehicle grilles, was valued at just over $15 billion a year ago.

Losses could mount, Lyft cautioned, as it continues to invest and eye a broader global expansion.

Lyft has been in a race with competitor Uber to be first to offer its stock to the public. Lyft is now working with JPMorgan, Credit Suisse, and Jefferies as the leading investment banks for the IPO.

Potential investors in Lyft Inc.'s initial public offering got their first look at the company's financials Friday, revealing a startup that's hustling to outrun its growing losses. Its IPO could come as soon as early April. At a US$25-billion valuation, Lyft would be trading at almost 12 times its annual revenue.

Lyft has been eager to emphasise its growth to investors over its total revenue, which is dwarfed by Uber. The IPO prospectus shows Lyft had 18.6 million active riders in the fourth quarter, up 47 percent from a year ago.

Lyft warned that it may have trouble achieving and maintaining profitability as it is now investing in shared bikes, scooters and financial support for drivers.

Both programs will work on a sliding scale based on a driver's length of service or number of rides.

Early reports suggest Lyft is expected to secure over $100 million from the IPO and is forecasting a valuation of around $20 to $25 billion. It has matched Uber's efforts to develop self-driving cars and has also expanded into short-term bike and scooter rentals.

The company's IPO includes a dual-class stock structure, with one class of shareholders getting 20 votes per share and another getting just one vote per share.

Uber, a larger company with a more diverse set of businesses, needs several more weeks for its IPO preparations. Industry giant Uber is in control of the other 66 percent of the ride-hailing market in the US. Picture taken September 21, 2017. In its filing, Lyft said it will pay cash bonuses of $1,000 and $10,000 to drivers who meet certain criteria, and that drivers may use those bonuses to buy the company's shares. Reuters reported the plan on Thursday.

The average Lyft driver earns about $30 an hour before expenses, while co-founder and CEO Logan Green made over $41 million in 2017 including stock options.

Related News:

  • The CFL has banned quarterback Johnny Manziel

    The CFL has banned quarterback Johnny Manziel

    As we try and connect the dots for what may have triggered the CFL's jettisoning of Manziel , we must note the issues in his past. I can't comment on those conditions. "It's disappointing that it didn't work the way we had hoped and that we'll wish him well".
    Ramos Gets Two-Game European Ban For 'Deliberate Booking'

    Ramos Gets Two-Game European Ban For 'Deliberate Booking'

    Ramos originally seemed furious with the Danish striker but his anger completely dissipated the moment the card was brandished. But he has now picked up a suspension for a possible quarter-final first-leg tie that he had sought to avoid.
    Lynne Patton Shreds Rep. Tlaib For Calling Her ‘A Prop’ For Trump

    Lynne Patton Shreds Rep. Tlaib For Calling Her ‘A Prop’ For Trump

    Patton also defended herself and the president against Tlaib's accusations, first on her Instagram. Meadows a racist.so I'm saying that in itself it is a racist act.
  • SpaceX, NASA Launch Crew Dragon on Crucial Test Flight to Space Station

    SpaceX, NASA Launch Crew Dragon on Crucial Test Flight to Space Station

    After the shuttle program was shuttered in 2011 after a 30-year run, NASA began outsourcing the logistics of its space missions. Boeing is also in the race to end NASA's eight-year drought of launching USA astronauts on US rockets from USA soil.
    Storm brings heavy snow, cold to Colorado

    Storm brings heavy snow, cold to Colorado

    Sunday Night: Showers and possibly a thunderstorm before midnight. "The snow is forecast to impact the Monday morning commute". Temperatures Wednesday and Thursday will not reach 30 degrees, almost 15 degrees below average for this time of year.
    How to watch Manchester City vs

    How to watch Manchester City vs

    That gives them a massive boost. "It's really close at the moment but I have full belief in the squad". When we lose possession, he wins the ball back and when we have possession, he drives the ball forward.
  • Pakistan to restore key train service to India

    Pakistan to restore key train service to India

    Wing Commander Varthaman was expected to be debriefed by the IAF on his detention in Pakistan , which is yet to take place. The rivals have fought two of their three wars over Kashmir since their independence from British rule in 1947.
    BSF cancels daily retreat ceremony at Attari-Wagah border for Abhinandan’s release

    BSF cancels daily retreat ceremony at Attari-Wagah border for Abhinandan’s release

    Pakistani officials handed over Varthaman to Indian officials, including from the IAF, at the Attari-Wagah Border late Friday. India's unilateral act has upset Pakistan to the extent that the country has promised to surprise India in a similar fashion.
    Victoria's Secret closing 53 stores this year

    Victoria's Secret closing 53 stores this year

    In November, the company's CEO resigned, and in December, its annual fashion show saw the worst ratings ever . The impending closings are far more than the 15 stores the brand closes on average every year.
  • Yan Valery Unleashes Absolute Rocket For Southampton Against Man Utd

    Yan Valery Unleashes Absolute Rocket For Southampton Against Man Utd

    Sanchez went down following a collision in the Saints' penalty area, and was forced off shortly afterwards, with Diogo Dalot replacing him.
    Should Justin Trudeau resign after the SNC-Lavalin scandal?

    Should Justin Trudeau resign after the SNC-Lavalin scandal?

    Roussel did not provide any reasons for her decision, other than to say she considered it "inappropriate" to defer prosecution. Gerald Butts , Trudeau's closet adviser, resigned last week but denied that he or anyone else pressured Wilson-Raybould.
    Jordyn Woods Will Appear On Red Table Talk Post-Cheating Scandal

    Jordyn Woods Will Appear On Red Table Talk Post-Cheating Scandal

    Some reports had Woods as completely drunk and blacked out during the alleged encounter with Thompson. Kris Jenner reacts to Jordyn Woods doing a Red Table Talk interview.


Most liked

Tesla Model S the new star of the Fremont Police Department
The Polestar 2 will go into production next year at the company's factory in China, and the auto will only be available online . To get you up to speed, Polestar is Volvo's performance arm, sort of like the Scandy version of BMW's M division or Merc's AMG.

Fortnite Season 8: What Level 340,000 XP Is
This means we have new areas in the map to explore, new challenges to complete and an entire Battle Pass worth of loot to aim for. It is mostly created to encourage players to explore the new area and make doing so (thanks to the enhanced mobility) enjoyable.

Russian River pours into California towns, swamping cars and buildings
Officials said they are in the planning stages to allow people to re-enter as early as Friday, Dugan said. The Sonoma County Sheriff's Office tweeted a photo of a road in Monte Rio deluged by water.

Qatar emir lauds Pakistan's gesture to release Indian pilot
The United States is "seeking information" on whether Pakistan used U.S. -built F-16 jets to down an Indian warplane, the U.S. Embassy in Islamabad said on Sunday, which may violate the F-16 sale agreements between Washington and Pakistan.

Huawei Units Plead Not Guilty to U.S. Trade Secret Theft
T-Mobile had accused Huawei of stealing technology called "Tappy", which mimicked human fingers and was used to test smartphones. Reuters reported on February 28th that the companies were "arraigned" and that a trial has been set for March 2nd, 2020.

Elon Musk's SpaceX takes major step towards reviving USA astronaut presence
The Dragon carried 400 pounds of crew supplies and equipment - slightly more than the weight of two astronauts - to the station. They plan to be aboard the next Crew Dragon when it takes off for Demo-2, the program's piloted test flight in July.

Meghan Markle’s friendship with Priyanka Chopra is on the rocks?
The source was not clear on exactly what Meghan meant by gender "fluid". "That story is the smoking gun". Recently, PeeCee even missed Meghan's baby shower as she was busy with her professional commitments.

Packers two-round mock draft as NFL Scouting Combine continues
He's also not the first coach to do so. "Having watched four games ... you don't feel being a deficiency when you watch him play". But again, I don't get to pick the players. "Talk me through it.' Nothing too major". "I've got a lot of football intelligence".

Kashmir: Pakistan readies to hand over Indian pilot
His return is expected to avert a unsafe confrontation that had raised fears of a wider conflict between the two countries. The pilot is being hailed as a hero in India , with fireworks being set off in the capital Delhi.

Tensions ease as Indian pilot released
Wing Commander Abhinandan Varthaman was handed over to Indian officials on Friday at the only legal border crossing with Pakistan. The Wagah crossing gate is famed for hosting an elaborate daily ceremony by Indian and Pakistani soldiers at sundown.

Imran Khan ready to talk peace with India's Modi: Pakistan FM
The White House urged "both sides to take immediate steps to de-escalate the situation". "We will will give a standing ovation". An IAF pilot was captured by Pakistan after an air combat Wednesday.

Trump distances himself from his former attorney ahead of Congress hearing
He also said that Trump provided false information to insurance companies and devalued assets for purposes of his tax liability. Cohen briefly spoke to reporters after the hearing, saying he is "humbled". "He wanted me to lie", the witness added.

Rami Malek lined up as Bond 25 villain after Oscars win
Bond 25 will bring back Naomie Harris , Ben Whishaw and Ralph Fiennes as Bond's MI6 teammates Moneypenny, Q, and M (respectively). The last developments on Bond 25 was less than two weeks ago, when reports said that The Bourne Ultimatum writer Scott Z.

Meadows Opens Up About Rare Bipartisan Moment During Cohen Hearing
Brenda Lawrence (D-Mich.) addressed the committee, she spoke out against Meadows for using Patton calling her political 'prop'. Afterward, Patton told PBS Newshour reporter, Yamiche Alcindor , that to her "today was not about the color of my skin".

Putin hopes Israel ties will continue to grow despite Netanyahu's 'situation'
One of Kahane's followers was responsible for the 1994 terrorist attack that killed 29 Palestinians at a mosque in Hebron. But Mr Netanyahu is also feeling heat from the right, as he fears losing votes to his more right-wing opponents.