Lyft to woo investors with fast US growth in IPO race with Uber

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Washington | Updated: February 16, 2019 5:45:35 AM

Lyft will pitch investors on its fast growth in the United States as it seeks to beat out Uber to become the first publicly listed ride-hailing company, according to people familiar with the matter.

lyft, uber, usSan Francisco-based Lyft is under pressure to sell investors on its prospects as it races neck-and-neck with Uber to an initial public offering (IPO) that could come as early as the second quarter of 2019.

Lyft will pitch investors on its fast growth in the United States as it seeks to beat out Uber to become the first publicly listed ride-hailing company, according to people familiar with the matter.
Lyft plans to tell investors its US market share is approaching 40%, up from 35% in early 2018, the people said. The company has pushed aggressively into smaller and mid-sized cities. Lyft currently serves more than 600 American and Canadian cities, three times more than in early 2017.

San Francisco-based Lyft is under pressure to sell investors on its prospects as it races neck-and-neck with Uber to an initial public offering (IPO) that could come as early as the second quarter of 2019.

If Lyft gets to list first, it would avoid being judged by the valuation given to its larger rival. Uber remains the undisputed king of ride-hailing in terms of size. Its revenue for the third quarter of 2018 was $2.95 billion, up 38% from the prior year. It operates in about 70 countries and also has businesses in freight hauling, autonomous driving, food delivery, air taxis and artificial intelligence research.

In contrast, Lyft is available only in the United States and Canada. And it has stayed tightly focused on its core ride-hailing service. Lyft has kept its financials secret. It is estimated to be worth between $20 billion and $30 billion, compared to Uber’s prospects for a valuation of up to $120 billion. So Lyft will be seeking to assure IPO investors it represents an attractive bet compared to its more established competitor, people familiar with its marketing strategy said. Lyft has benefited from a spate of scandals that rocked Uber in 2017, including allegations of sexual harassment made by its female employees, the forced resignation of its chief executive officer and its use of illicit software to deceive regulators.

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