Lyft Plans Investor Road Show For IPO Of $2bn
Lyft, ride hailing platform has stated that it will soon launch a roadshow to create awareness about its brand and services in view of its upcoming IPO scheduled for 18th March. Lyft will make a strong attempt to attract investors to make its IPO a success as its closest rival Uber Technologies is making its own plans to launch an IPO next month. Before its roadshow and official launch of IPO, Lyft will meet potential investors across United States to make a strong pitch of its business model and differentiate itself from Uber.
In recent years Uber has diversified itself into several other businesses like food delivery, freight hauling and moved on to several other nations across the world. Uber is seeking valuation of around $120 billion for its IPO though financial analysts are pegging it around 100 billion based on sales figures released recently. Both Uber and Lyft are not profitable firms. Lyft is aiming to subsidize its ride-sharing rates through new promotions to attract more customers once it receives the funding boost after IPO. It is also likely to invest in new technological initiatives like autonomous driving after receiving funds from its IPO.
Startup tech firms like Slack Technologies and Pinterest too are making a beeline for IPO’s as equity markets are now on a historic high after the low late last year. Though they remain vulnerable due to tensions over China – US trade issues, geopolitical concerns like Brexit and slowdown in developed economies like Europe and China these tech firms are positive of successful IPO. The IPO from Lyft will be the first one from a ride-hailing company that earned $36.5 billion in sales across the globe during 2017. Though the firm is expected to grow rapidly in forthcoming years it is plagued by issues like regulatory pushback, drivers’ pay and benefits followed by future of automated driving.