Tag Archives: Uber

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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Electronic scooters and Smart bikes are taking off and the world will be cleaner and healthier

Lime is now teaming up with Uber to make the world smarter. The electronic scooter rental company Lime will be founded by Uber Technologies Inc as part of a $335 million financing round, Lime said on Monday.

The idea is led by Alphabet Inc`s vemtire arm GV, and they values the scooter business at $1,1 billion. Uber plans to promote Lime in its mobile application and slap its logo on the scooters.

This is an idea I came up with about twenty years ago, and a few months later it was a hit. At that time it was without a vehicle. Electric scooters have been on the market for a long time, but now it seems to be a hit worldwide.

Lime was focused on the idea that mobility can be smart, equitable, and fun. By connecting cities and improving the way people experience first and last mile transportation, we aim to leave future generations with cleaner, healthier planet, Lime said.

From smart bikes to electronic scooters and beyond, Lime said they are committed to building strong social bonds, lasting community relationships, and the worlds most versatile smart mobility fleet.

I also came up with the idea of making City Bikes about twenty years ago. It`s funny because nobody had City Bikes at that time. I gave the idea to a friend of mine, and he worked on it. Now, it is everywhere. Even more fun is that Uber has started with the same idea. Twenty years later.

Uber took a huge stake with a startup called Jump Bikes, which rents electric bicycles, before acquiring the business for more than $100 million in April this year. Uber are planning to roll out more City Bikes in many cities around the world.

Lime is only 18 months old but released its e-scooters in Paris last month. The «free-floating» electric scooters are out on the streets and they are controlled with a mobile app. So far, they have been very popular in Washington DC and San Francisco. Now, they take Europe by storm.

The scooters are lightweight, easy to spot to their bright green motors and nippy, with a maximum speed of 15 miles (24 km/h). You locate the nearest one with the app and turn it on by scanning the QR code on the handlebars.

At this point you are charged €1 in Europe and $1 in the U.S. Then you will be charged 15 cents for every minute of ride time. Now, as the weather is fine, it can be cheaper to rent a scooter than taking the crowded bus to the town.

Paris has a chaotic time for its transport network, so Lime is coming in at the right time. It wont be less chaotic when Tour de France is coming to an end in about three weeks. Serving cities is at the core of Limes mission.

From electric scooters to smart bikes, Limes dock free mobility solution reduce traffic congestion, promote healthy living, and solve the all-important challenge of the first and last mile. And thats just the beginning.

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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Taxidrivers could become extinct

If you work as a taxi driver you must have a plan B, because someone out there will change the game. Thousands of taxi drivers will be replaced by robots. The driverless cars is one of the biggest and fast growing technology trends at the moment.

Goolge have been working on a driverless car for some years now, and many others are working with the same case. Google said they will be ready for the mainstream market in about five to ten years, but driverless cars is in use already today!

Google-Driverless-Car-picture

The UK government is pouring about $30 million into those driverless cars, and Britain have real driverless cars on real roads in four different places in the country today, right now. “An essential part will be an effective and fast communication between cars, and between cars and existing and future roadside infrastructure,” said Dr Evtim Peytchev, of Nottingham Trent University.

Business Secretary Vince Cable, backing driverless car trials in four cities, believes driverless transport could become a £900 billion industry worldwide by 2025.

Google is not alone on the market for this new technology trend.

Audi`s next generation A7 is on the road today, and Mercedes, BMW, Volvo and Toyota are working to make a big advantage in the new auto market. But what`s funny is that some of the innovative companies in this new market isn`t real car company`s.

One of them is Google, but Apple is also on this trend now.

Google`s driverless cars have traveled thousands of miles and most importantly; without an accident! Awesome.

One of the biggest privately held technology company`s is Uber, which I have talked much about in my recent articles. Google venture is not only investing in real hi-tech company`s, and it is no secret that Google have invested huge amount of money in Uber. A company that is taking the world by storm right now.

Uber have so far made many taxi drivers angry, and Uber have disrupted the old traditional taxicab market already. This is just the beginning. Uber and Google will shock the market again, but this time it will be critical for the taxi drivers. Reason: driverless cars + Uber. What a mix. But there is a drawback; Uber and Google may have a conflict of interests, because Google is so far along on the ride-sharing portion of this combination.

Taxidrivers will be history.

Your cab in the future will be a smart phone on four wheels.

Taxidrivers have been angry about Ubers innovative business model, but what are they gonna do when the driverless cabs comes to the market? They will be fired. You think that a human/taxi driver is better and safer than a computer but it isn`t. A «driver» is safer on the road than a human/taxi driver.

The driverless cars will make peoples`s life easier and cheaper. CEO`s and other workers can use the new car/cab as an office instead of driving the car. Some companies will organize driverless carpools for their employees if they work overtime.

Parents can send their kids to the school and other activities without a driver/busy parent.

They say it is safe, but is it 100% safe? What if the driverless car crash. Who are responsible? Who can you blame on?

According to The New York Times, policy makers and regulators have argued that new laws will be required if driverless vehicles are to become a reality because “the technology is now advancing so quickly that it is in danger of outstripping existing law, some of which dates back to the era of horse-drawn carriages”.

 


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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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Airbnb IPO

Sharing economy has become very popular and companies like Uber and Airbnb has caused a paradigm shift in the travel business, and Airbnb are now planning to go public. That can happen as soon as next year.

airbnb

The privately owned company Airbnb is founded in 2008 by Brian Chesky (CEO), Joe Gebbia and Nathan Blecharczyk. The firm is headquartered in San Francisco, California.

Airbnb is a website for people to rent out lodging. Users of the site must register and create a personal online profile before using the site. Every property is associated with a host whose profile includes recommendations by other users, reviews by previous guests, as well as a response rating and private messaging system.

Airbnb have just completed its latest round of fundraising, giving it a valuation of more than $10 billion. The company serves 1 million guests each month, with over 800,000 listings in more than 190 countries.

As of July 2011, the company had raised $119,8 million in venture funding from different partners. In April 2014, Airbnb closed on an investment of $450 million by TPG Capital at a valuation of approximately $10 billion.

Revenue is expected to reach as much as $1 billion in 2015, and that`s a big jump from $250 million in 2013. Airbnb could be the worlds second largest «hotel» company if it surpasses Starwood and Marriott, trailing only Hilton. It`s already bigger than Wyndham and Hyatt hotel chains with their valuation of $10 billion.

Airbnb is growing. In May 2011, they acquired a German competitor, Accoleo. That`s their fist international Airbnb office in Hamburg. In October same year, they established its second international office in London.

In 2012, they opened six more offices in cities like Paris, Milan, Barcelona, Moscow, Sao Paulo and Copenhagen. Their European headquarters would be located in Dublin. In 2012, they said they had focus on Australia, the second largest Airbnb market behind the United States, as well as Thailand and Indonesia.

They have earlier announced its strategy to move more aggressively into the Asian market with the launch of their newest headquarers in Singapore. The company`s goal is to acquire an additional 2 million properties within the continent.

I have earlier talked about Uber and their challenges. Some people say their business is illegal and so is it about Airbnb. Other people say their business model has raised legal concerns. Especially in New York, where state Attorney General Eric Schnederman launched a probe into the business. He suggest that more than half of Airbnb`s New York listings could be illegal.

Airbnb still belive in their business model and continue to work on an IPO.

 

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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Will Uber win and Yellow Taxi Car lose?

Uber is probably one of the most attractive companies out there for would be investors. They raised $1,2 billion in funding and are valued at $17 billion. Unfortunately, Uber shares are out of reach for most as the on demand car-sharing app remains a privately held company.

Uber logo

How can investors profit on that? It seems like investors are betting on Uber`s success. Take a look at Medallion Financial Corp, as the short interest has skyrocket from about 400,000 at the end of 2013 to 1,300,000 at the end of last month.

Medallion Financial Corp is a company that specializes in financing loans used to purchase taxi medallions. Uber is trying to make those taxi licenses worthless by creating its own private fleet of drivers and bypassing the medallion system entirely.

Medallion Financial has had a slowly but steadily declining earnings since 2012, and the short interest in their stock has increased by about 245%, and the stock price has been falling 17%, which is a bad sign.

Uber is one of several leading the vanguard of the sharing economy. The sharing economy is also called collaborative consumption. It is the socioeconomic model in which a pool of individuals all benefit from gaining access to physical assets without actually needing to own the underlying assets, which are often prohibitively expensive.

Property rights are still clearly defined in collaborative consumption models. A renter resulting in a more efficient allocation of the asset pool. Up until recently, matching a potential passenger with a driver looking to make a few bucks was nearly impossible logistically on a large-scale. Smartphones apps like Uber and Airbnb have made the process simple by acting as mobile accessible hubs for the efficient allocation of these resource pools.

Medallion Financial Corp may be the most obvious victim of Uber`s rise, but there are other potential losers later down the road as well. If Uber reach their goal with their success as a worldwide phenomenon, the rental car business may suffer as well. Uber is less expensive, and already cheaper than many city-regulated taxis and will become more competitive with car rental costs.

Avis Budget Group is the second largest publicly traded rental car company in the U.S, and the one which acquired car sharing company Zipcar in March this year for about $500 million. Zipcar is similar to Uber in the sense that it enables car-sharing.

The difference is that Zipcar owns its own fleet of cars, while Uber does not. That means much lower costs, and lower risk for Uber. Uber drivers provide their own car to become a driver, which is why Uber has a much cheaper cost structure than the other companies. Uber just takes a small commission for each ride for matching drivers with paying customers.

The largest publicly traded car rental company in the U.S is Hertz, and Enterprise is the largest car rental chain in the country, but it is privately held. Hertz is growing and its revenue is up by over 20% in the past four quarters, but in March they had a dip in the sales growth by 10% and a significant drop in earnings.

For all I know, Uber is planning an IPO anytime soon. We don`t know how fast Uber is growing as the financial information is not publicly available, because they are still a private company, but it seems like investors are placing their bets on Uber as a winner and the traditional yellow taxi cab companies as losers.

Reports today:
08:30 a.m EST Core Durable Goods Orders
08:30 a.m EST Final GDP
08:30 a.m EST Durable Goods Orders
10:30 a.m EST Crude Oil Inventories

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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