Although the company reported a 2018 net loss of almost a billion dollars, investors clamored for a piece of the Lyft IPO, with underwriters reporting demand for the stock that was 20 times larger than the shares available, the Wall Street Journal said. Now that both Lyft and Uber have made it easy to summon a ride on a mobile app, more people are already starting to wonder if owning their own cars will make sense in the future.
Public market investors, keen on Lyft's revenue growth and after enduring a long stretch with few IPOs from highly valued tech companies, piled into the offering.
Logan Green: 684,591 class A shares and class B shares worth $655.5 million at IPO prices.
The success of the IPO came despite Lyft's steep losses, criticism of its dual-class share structure and some concerns over its strategy for autonomous driving, for fear of missing out on the company's strong revenue growth.
Since 2012, Lyft has racked up $3 billion in debt, although recent growth has surged - the San Francisco-based company saw its revenue double to $2.2 billion a year ago from 2017.
The ride-hailing platform Lyft goes public today ahead of Uber, which is expected to list in the coming weeks. The stock debuted this morning on the Nasdaq Global Select Market under the ticker symbol "LYFT". However, financial tycoon Warren Buffett won't be investing in Lyft IPO.
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The spokesperson went on to clarify and assert that no crease would be visible " even when the display is off, or all white ". Additionally, the Mi Fold's main screen seems to offer another advantage, especially compared to Samsung's Galaxy Fold .
Meanwhile, Lyft parlayed a warm and fuzzy image that it used to cultivate by adorning drivers' cars with a fluffy pink moustache to position its brand as the more socially responsible of the two ride-hailing rivals.
Lyft said Friday it will invest $50 million annually, or 1 percent of profits - whichever is greater - in transportation initiatives in cities. Other hotly-anticipated tech IPOs are expected this year from business collaboration firm Slack and visual discovery engine Pinterest. The investments will include free or discounted rides for medical patients and low-income seniors and developing infrastructure for bikes, scooters and transit.
Investors are clearly interested in Lyft despite its recent losses. Drivers from both companies went on strike in Southern California earlier this week to protest changes in how their pay is calculated.
Lyft however kept their focus only on consumer transportation.
It's nearly counterintuitive, on the surface at least, that big-name investors would be clamoring at the gate and packing hotel penthouses to get a piece of a company so deeply in the red, but that's exactly what's happening with Lyft's initial public offering.
The negative publicity helped Lyft attract new drivers and riders without spending much on marketing.
That's a successful first day, and Lyft should be congratulated for surviving its cutthroat early years and helping to create a novel form of transport. The company also faces a slew of arbitration claims and lawsuits from drivers who claim they are misclassified as independent contractors and owed back wages and reimbursement for expenses.