Lyft's IPO: 7 things you need to know

Lyft's IPO: 7 things you need to know

Lyft's IPO: 7 things you need to know

According to March 29Reuters report, Lyft outmaneuvered its principal rival Uber Technologies Inc., which is reportedly going to kick off its own sale in April, in the race for the capital markets after filing for the IPO earlier this month.

Lyft Inc. started its IPO investor road show with a target price of between $62 and $68 but has created a frenzy by pricing the Initial Public Offering at $72 per share.

Although it is common among highly-valued tech companies, public market investors still balk at this structure, which gives founders more votes per share and outsized control of the company.

At the flotation price, Mr Green's stake was worth about $600m while Mr Zimmer's was valued at $415.8m.

Lyft's first day of trading went as high as $96.84 a share and as low as $75.49 a share before finally setting at $87.24 before the trading day ended at 10% increase.

Co-founders Logan Green and John Zimmer talked about their early vision of the company and their commitment to providing alternatives to individual auto ownership, at an event in Los Angeles, where executives celebrated Lyft's market debut.

Yes, Lyft and its larger rival Uber Technologies did more than $58bn worth of rides a year ago, and that's impressive for a mode of transit that didn't exist when the last U.S. president entered office.

Shares of the No. 2 US ride-hailing company will start trading on the Nasdaq Global Select Market under the ticker LYFT after an initial public offering that's been viewed as a bellwether for Silicon Valley companies.

Unlike Uber, which has developed its own self-driving division, Lyft has chosen to strike partnerships to expand in the sector, including with vehicle parts suppliers Magna International Inc and Aptiv Plc.

Lyft's IPO, which is the year's biggest thus far, sets the stage for other Silicon Valley unicorns seeking to debut in the stock market this year, including Pinterest Inc, Postmates Inc and Slack Technologies Inc. Lyft drivers, meanwhile, "definitely aren't getting rich", Quartz noted.

Lyft said Friday it will invest $50 million annually, or 1 percent of profits - whichever is greater - in transportation initiatives in cities. "Right now they both have the chance to become that, and the next decade as publicly-traded companies will help determine who does". Drivers from both companies went on strike in Southern California earlier this week to protest changes in how their pay is calculated.

"This is a company that has negative cash flow, and but it's spending to juice revenue".

Lyft however kept their focus only on consumer transportation.

Lyft's business is built on the premise that having a auto is expensive and as more people move into urban areas, they are shifting away from owning a vehicle to using services to get around. Marketplace's Tracey Samuelson asked Faiz Siddiqui, a tech reporter covering transit for the Washington Post, where Lyft goes from here. 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.

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