Daily Management Review

Lyft is getting ready for IPO


Lyft Inc, the main competitor to Uber in the market of mobile applications for ordering a taxi in the US, has begun preparations for the initial public offering, Bloomberg reports citing informed sources.

Tony Webster via flickr
Tony Webster via flickr
According to sources, the IPO is being prepared by the consulting company Class V Group. It is expected that work with banks may begin in September, and the listing may take place in March-April 2019.

During the last round of investment attraction, the cost of Lyft was estimated at about $ 15.1 billion. Uber was estimated at $ 76 billion.

Lyft's management is now facing a difficult choice: whether to conduct an IPO sooner or later than Uber, which tentatively plans a listing in the second half of 2019.

Starting earlier than Uber, Lyft will be able to attract more attention and enlist the support of investors, as well as become a marker for the online taxi market, but there is a risk that investors can decide to wait for the listing of a larger competitor.

It is noted that competing companies rarely arrange an IPO on close dates.

source: bloomberg.com