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Ride-Hail Firm Lyft Races to Leave Uber Behind in IPO Chace

Original Content Publication Date: 12/06/2018

Summary

2019 is the year of the tech company IPO race and the leader is currently the ride-hail firm, Lyft. Lyft has filed to go public ahead of bigger competitor, Uber, and other tech companies who plan to follow suit later this year. A major reason for the sudden push for IPOs stems from the already declining market possibly getting lower. Uber plans to open up to public investors among $1.07B in losses due to rapid expansion.

Key Points

  • Multiple tech companies are planning to go public this year with Lyft in the forefront and Uber lagging
  • The declining market is incentivizing companies to apply early in the high possibility that it continues downward
  • Both Lyft and Uber are still unprofitable but there are quite a few considerations when deciding on which to invest in

Discussion Questions

  • What major benefits are there for unprofitable companies to go public?
  • In this situation, would you rather apply first like Lyft or later like Uber? Why?

REFERENCE

 Link to original article


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