Tag Archives: Taxi

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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Uber – a Taxi killer?

 

Uber is a venture-funded startup and transportation network company based in San Fransisco, California, that makes mobile apps that connects passengers with drivers of vehicles for hire and ridesharing services. The company arranges pickups in dozens of cities around the world.

Uber logo

Uber drivers had cars such as Lincoln Town Cars, Cadillac Escalades, BMW 7 Series and Mercedes-Benz S550 sendans. After 2012, Uber added a wider selection of cars to market to a broader cross-section of the market, called UberX.

Cars are reserved by sending a text message or by using a mobile app. Using the Apps, customers can track their reserved car`s location. The company has not released the names of its investors, but it has been widely reported that Fidelity Investments leads the investment.

Uber is probably the biggest Taxi-killer in history. Three days ago, in a concerted action, taxis blocked roads in major European cities in protest against what they perceive as a threat to their livelihood by companies such as Uber.

The cabbies contended that Uber and similar smartphone app-based services have an unfair advantage because they`re not subjected to the same kinds of fees and regulations placed on taxi’s. Uber is controversial.

Uber`s pricing is similar to metered taxis although all hiring and payment is handled exclusively through Uber and not with the driver personally. If the Uber car is travelling at a speed greater than 11 mph, the price is calculated on a distance bases.

Otherwise, the price is calculated on a time basis. At the end of a ride, the complete fare is automatically billed to the customer’s credit card. Uber has said that its high prices are the premium that the customers pay for a cab service that is not only reliable but also punctual and comfortable.

During holiday times, Uber increases its prices to «surge price» levels to reach an economic equilibrium by attracting more drivers. During New Year`s Eve 2011, prices were as high as seven times normal rates, causing outrage in response.

Uber was founded as UberCab by Garrett Camp and Travis Kalanick in 2009. One year later they received venture funding from a group of super angel investors in Silicon Valley, California, including Chris Sacca.

In 2011, Uber raised more than $11,5M in Series A funding led by Benchmark Capital. In later 2011, Uber further raised $32 million in funding from several investors that include Goldman Sachs, Menlo Ventures and Bezos Expeditions bringing their total funding amount to $49,5M.

The company entered the London market in July 2012 with an initial staff of about 90 drivers of Mercedes, BMW and Jaguar. One week ago, Uber announced $1,2 billion in funding in its latest round. The round values Uber at around $17 billion pre-money.

Several drivers have credited Uber for increasing their potential earnings by 30%. The company faces competition from lower-cost real-time ridesharing startups such as Lyft and SideCar. To compete at lower price levels, Uber has introduced UberTaxi (partnerships with local taxi commissions) and UberX (non-luxury cars such as Toyota Prius Hybrids).

Last month, London black-cab drivers, members of the Licensed Taxi Drivers Association, threatened to disrupt traffic in June if Transport for London (TfL) refuses to ban Uber in London. The New York City Taxi and Limousine Commissions has discouraged drivers from participation in Uber, resulting in suspension of Uber`s New York taxi service in October 2012.

Uber has been accused in several jurisdictions of illegal taxicab operation. It`s understandable that they changed their name from UberCab to Uber. Following a social media campaign by Uber`s users, the D.C City Council voted to formally legalize Uber`s service, with no minimum fare.

They have more competitors to come. China`s biggest taxi app is Didi and they books over 5 million rides a day! The company which is registered in the Cayman Islands, will do an IPO in three to five years in the U.S. Didi`s app is backed by Asia`s largest Internet company Tencent Holdings Ltd and their biggest competitor in China is Kuaidi, which is backed by Alibaba Group Holding Ltd.

Didi is owned by Beijing Xiaoju Keji Didi Dache Co and they are planning to have 1,500 employees at the end of this year. Kuaidi is owned by Hangzhou Kuaidi Technology Co., operates in a similar way and allows payments and rebates through Alibaba’s mobile-payment system, Alipay Wallet.

It`s gonna be a great battle between those apps in the future, and the largest player will win greater support when it comes to raising capital and that will in turn help them to grow and be bigger than their competitors.

 

 

Reports today:

08:30 a.m EST PPI m/m

08:30 a.m EST Core PPI m/m

09:55 a.m EST Prelim UoM Consumer Sentiment

 

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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