Lyft beats expectations to value $20bn ahead of IPO

The ride-hailing giant has beaten Uber to going public, as it reveals it will begin trading on March 29 with shares priced at $72

29Mar

Lyft has revealed that its IPO, expected to open on the Nasdaq on March 29, would value the company at more than $20bn, with shares priced at $72 per share. This means that the ride-hailing company would hit the top of its expected range, beating earlier estimates pricing shares at between $62–$68.

The valuation follows Lyft's IPO prospectus revealing that it had lost $911m on $2.2bn revenue in 2018 earlier this month when the company admitted it had "a history of net losses", adding that it "may not be able to achieve or maintain profitability in the future". However, the San Francisco-based firm claimed that high demand would see sales grow faster than losses, noting that the company has grown in terms of value from $343m in 2016 to $2.2bn today.

The IPO would mean that Lyft has closely beaten its main competitor, Uber, to public market after months of speculation.

Uber is one of many mature startups expected to go to IPO this year – alongside Pinterest, Zoom and Slack – in a public offering that is predicted to be one of the biggest ever, with some estimates valuing the company at $120bn. While there is no date for its IPO yet, earlier this week, Uber acquired Careem, its Dubai-based rival, for $3.1bn, suggesting it is gearing up to go public soon.

Founded by CEO Logan Green and president John Zimmer in 2007, Lyft launched its ride-hailing app as a competitor to Uber in 2012. Shares will begin trading under the ticket 'LYFT' from March 29 onward, with J.P Morgan, Credit Suisse and Jefferies tipped as lead underwriters of the offering. 

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