Lyft is finally ready to go public, as it readies its documents to submit to the Securities and Exchange Commission, which is the sole authority in charge of the US stock market. The US ride-hailing service, Lyft has revealed its S-1 document, which is the official document required to go public in the US.
Lyft is based out of San Francisco, and is at the heart of the Silicon Valley, renowned for being a hub of multi-billion dollar tech startups. Lyft is preparing to debut at the NASDAQ, the New York Stock exchange under the name ‘LYFT’.
Lyft is currently valued at $15.1 billion dollars, but after the stocks are offloaded on to the share market, their valuation will jump by more than $5 billion dollars to a whopping net worth of $20 Billion. Credit Suisse Group AG, JPMorgan Chase & Co., and Jefferies Financial Group Inc. will take the lead on the initial public offering of shares from Lyft.
2018 has not been a good year for the company, as it has announced that its losses for the year will amount to more than $1 billion dollars. Part of the reason why Lyft is bleeding money is because of the fierce rivalry between the company and Uber, which is more than 8 times bigger than Lyft in terms of current valuation.
Both Uber and Lyft are currently locked in a two-way battle for achieving market dominance in the ride-hailing segment of the US.
Lyft is yet to announce the price range of its shares. The offering price that is listed in the documents submitted to the Securities and Exchange Commission lists the offering price of $100 million dollars’ worth of shares, but that is just a placeholder amount that companies use before going public.
Lyft has achieved total revenue of $2.2 billion for the financial year of 2018, which is more than double the amount that the company recorded in 2017, which was pegged at around $1 billion dollars. Although the company has seen an uptick in revenue, it has recorded a loss for the second consecutive year; $911 million out of the total revenue of $2.2 billion was recorded as the net loss in 2018 while $688 million out of the total revenue of $1 billion was recorded as the net loss for 2017.
At the moment, Lyft is in control of 34 percent of the ride-hailing market in the US, a number that it has worked very hard to improve over the years. This is especially vital for the company as it readies itself for an initial public offering. Industry giant Uber is in control of the other 66 percent of the ride-hailing market in the US.
The main shareholders of Lyft are General Motors, which has control over 7.76 percent of the company while the Japanese giant in the e-commerce sector Rakuten controls a 13 percent stake in the company. Even the mother company of Google, Alphabet owns 5.3 percent of the company.
Lyft was founded in the year 2007, and till date the company has managed to raise $5.1 billion dollars in venture capital funding. According to the filing at SEC, the total number of cumulative rides taken by Lyft riders stood at 30.1 million in the year 2018. The company has operations across 300 markets and riders have taken more than a billion rides under the company.