Lyft's IPO: 7 things you need to know

Lyft will IPO on Friday with an insane $24.3 billion valuation

Lyft Inc., the No. 2 USA ride-hailing giant, jumped in its debut after raising $2.34 billion in an initial public offering that priced at the top of an elevated range, sending an encouraging signal to the stampede of Silicon Valley companies lining up to go public this year.

We told you that Lyft had decided on an IPO price of $72 dollars per share. Its ticker symbol is LYFT.

The Nasdaq listing button on speakers podium is covered in pink confetti after Lyft listed on the Nasdaq at an IPO event in Los Angeles, Calif. on March 29, 2019.

"Lyft is shooting itself in the foot by going public, as I continue to think that the company is not ready for the harsh glare of the public market and it is giving away a big edge that it could have had over Uber", Windsor writes.

Who gets rich: Rakuten, General Motors, Fidelity, Andreessen Horowitz, CapitalG, Floodgate, Valerie Jarrett, and Lyft co-founders John Zimmer and Logan Green have the largest stakes.

Lyft and Uber have been classified as independent contractors, claiming that most drivers prefer the flexible work arrangement, even if it offers fewer benefits and less job security.

They were able to sell 32.5 million shares at $72 a piece, raising $2.34 billion from investors making the company's total value at around $24 billion.

Apart from transportation services, Uber has significant investments in food delivery namely UberEats and truck service, Uber Freights.

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On top of capital injection that will help Lyft's public valuation increase-it's now valued at $24 billion-Lyft's underdog story provides a strong narrative for industry watchers looking for an Uber alternative.

Lyft's offering ended up 20 times oversubscribed, similar to other high-profile IPOs, with more than 500 orders from institutional investors such as mutual funds, according to people familiar with the matter.

Lyft's debut is the first of several high-profile IPOs expected to emerge this year from the technology industry, a sector that has helped propel the stock market in recent years. The San Francisco-based company beat its larger ridehailing competitor Uber to the market. The companies have partnered on autonomous driving efforts, but have become more competitive partly as a result of GM's acquisition of Cruise Automation, an automated driving startup, later in 2016. They also had the privilege of investing their incetives as stock ahead of the IPO until last Thursday.

Lyft posted a loss of $911 million in 2018 versus $688 million in 2017, despite revenue doubling in 2018 to $2.16 billion.

One issue has been increased congestion: Schaller Consult estimated there are more than 10,000 taxis and ride-hailing vehicles on the road at the center of Manhattan each afternoon, two times the level in 2013.

Lyft said this week it will provide at least $50 million per year to cities to support transportation infrastructure, fight climate change and provide free rides to those in need, such as victims of natural disasters.

Even so, Lyft's revenue per ride has been increasing, so some analysts see the company as headed in the right direction.

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