Lyft’s $23 Billion For IPO, Uber Rival, Ride-Hailing Firm's Target Valuation

The Lyft logo is seen on ride-hailing car in Manhattan in New York City
The Lyft logo is seen on ride-hailing car in Manhattan in New York City (Photo: Reuters/MIKE SEGAR)

Lyft targets a valuation of $23 billion for its IPO, initial public offering.

After publicly filing with the SEC for their IPO, through a press release that surfaced on Monday, Lyft revealed that they are seeking for a $23 billion valuation as they launched the investor roadshow for their initial public offering. LYFT will now be the ride-hailing firm's trading symbol from its former trading symbol Lyft.

The press release also revealed that Lyft is expected to have a value of $21 billion to as high as $23 billion. The figures came out as anticipation of from $62 up to $68 upon hitting the Nasdaq exchange is anticipated. Being a private company, Lyft is currently has a $15 billion valuation.

Once it materializes, Lyft's initial public offering will carry the title of the first ride-hailing company to go public. The ride-hailing company will also be playing a big part in emphasizing its growth in the U.S. to the investors in the area of selling rides through bike, scooters, and cars.

In a part of their filing, Lyft revealed that they made a $2.2 billion in revenue last year. $8.1 billion of the said revenue for 2018 came from bookings. Booking plays a big part in the ride-hailing firm's earning gaining 76 percent of the annual increase. Lyft's sales, on the other hand, grow 103 percent annually.

The increase is not the only term to be identified with Lyft, the more driver-friendly Uber alternative. They also experienced the lost for three consecutive years from 2016 until 2018. They experienced the net loss of $682.8 million in 2016, $688.3 million in 2017 and the highest so far at $911.3 million in 2018.

Although Lyft is the first ride-hailing firm to file an updated filing with the Securities and Exchange Commission for their IPO, the act does not mean that Lyft will remain to be the only one. Uber, Lyft's rival is heard to be filing at SEC and making a debut of its initial public offering. Uber began spreading their diversities wider to freight hauling as well as food delivery and is expected to reach their target valuation of $120 billion.

As of the moment, technology companies are beginning to consider lining themselves for public listings. Slack, a business messaging company based on Silicon Valley with $1 billion valuations is expected to go public before the year ends. Pinterest, an image sharing company is currently studying and waiting to take the step to go public as Lyft initiated.

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