Tag Archives: Lyft

Uber is offering 180 million shares for $44 and $50 and that will value the company at about $84 billion

The stock market is declining while the IPO market is hotter than ever this week. At least 15 IPO deals are expected to be priced this week and this is the biggest week since 2015. What most investors are focusing on now is Uber which is the biggest U.S company deal since Facebook in 2012.

Uber is finish with its roadshow in London, Boston and San Francisco, and the company is expected to price the sale on Thursday this week. The demand for the stock is strong and investors have put in orders for at least three times the amount of stock on offer.

Uber can raise as much as $9 billion and if that happen it will be the largest this year. It`s not clear what the price for stock will be but I think that the turmoil in the market at the moment will have an impact of the price range.

Uber is offering 180 million shares for $44 and $50 and that will value the company at about $84 billion. They have $11 billion in revenue and about $50 billion in gross bookings. Like Lyft, they have big operating losses.

Last year, Uber lost $3,03 billion in the 12 months through March. This is the largest loss ever for a U.S startup in the year before an IPO, and they have a lot of challenges.

More than 82% of the revenue comes from ridesharing while 13% comes from food delivery. Uber has a deal with McDonalds and used to get a 20% commission on deliveries. McDonalds renegotiatied the deal, and now Uber gets a 15% commission.

Chief Executive Dara Khosrowshahi is trying to sell Wall Street his vision that Uber will become the dominant force in all forms of transportation. But the competition is intense in many places around the globe.

China have its own Didi Chuxing while India has Zomato and Swiggy for food delivery. Didi is also in Latin America where they compete with Doordash, and all of them in the food delivery business.

Uber and Lyft drivers are planning a strike from 7 am to 9 am on Wednesday to protest their wages, their treatment as independent contractors rather than employees, and the lack of regulation governing the new sector.

Drivers have challenged the ride-sharing companies many times for refusing to deem them employees, which means they are responsible for maintenance of their own vehicles as well as gas and insurance, which greatly reduces the amount they can earn per hour.

Their competitor Lyft went public in April this year and entered the market with its IPO price of $72 per share. The stock soared on their debut but it came down again as IPO`s usually does, and now the stock is trading about 16 percent below its IPO price.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Lyft is kicking off its IPO road show and expects to raise as much as $2,1 billion

A lot of unicorns are coming into the market and Lyft is the next to go public. It is an on-demand transportation company primarily providing ride-haling services like Uber. The company was launched in June 2012 and operates in approximately 300 U.S cities.

Lyft is kicking off its IPO road show this month and their goal is to get on the public market in April. The valuation is about $23 billion for Lyft and thats way beyond Ubers valuation of $150 billion. Lyft will be listed on Nasdaq under the ticker LYFT:

Lyft expects to raise as much as $2,1 billion through the sale of stock in a price range between $62 and $68. Not all of their shares will be sold to the public and they will hold less than half the votes among shareholders. So far, Lyft has collected about $5 billion in total private equity investment to date.

Revenue last year came in at $2,2 billion and their growth have skyrocketed by about 500 percent since 2016. Their losses are also skyrocketing while the loss last year reached $911,3 million. Lyft lose twice as much as their competitor Uber.

The venture capitalists have so far funded the company and now it is the publics turn. And Lyft need cash now. The companys cash and cash equivalents fell 53 percent to about $518 million during the course of 2018.

Lyft is like Uber disrupting the taxi industry but also the way people move around. The taxi industry as we know it today will change dramatically. Lyft and Uber`s business model will change the way people think about a vehicle and how they move around.

Not only that. We are not far away from self-driving cars, and that will be a huge game changer. And when that day comes, what will be the difference between Lyft and Uber? On top of that; they will face a lot of competition from established automakers.

You can imagine how it will be in the market if automakers like Tesla are joining the business by selling people rides to the people instead of selling them cars? What car do you prefer on your ride?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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