OffbeatLyft beats bigger rival Uber in filing for IPO

17:41  06 december  2018
17:41  06 december  2018 Source:   reuters.com

Uber Reportedly Files For IPO

Uber Reportedly Files For IPO Barely a day after Lyft filed plans to go public, rival Uber Technologies Inc. is following suit with its own plans for an IPO, The Wall Street Journal is reporting. Uber this week filed a confidential Form S-1, the SEC registration form for new securities, the paper reported, citing "people familiar with the matter." Uber's IPO could come as soon as the first quarter, according to the Journal, and has been widely anticipated, with Uber having previously said it hopes to garner a market value of more than $100 billion.

Lyft is reportedly racing to beat Uber to the public markets, targeting an initial public offering for next spring. The ride-hailing app has hired IPO adviser Class V Group to work with management through the process and plans to begin accepting pitches from banks as soon as next month

Uber and Lyft have long competed for passengers and drivers in the US. But next year, the ride-hailing apps’ Their listings will be among the biggest the technology sector has seen in years, and mark the next Lyft is targeting an IPO as early as March or April, although no decisions have yet been made

Ride-hailing company Lyft beat bigger rival Uber Technologies in filing for an initial public offering that will test investor appetite for high-profile but loss-making technology companies.

The company, which was last valued at about $15 billion, did not specify the number of shares it was selling or the price range for the offering in a confidential filing with the Securities and Exchange Commission on Thursday.

The IPO is slated for the first half of 2019, sources have told Reuters. Uber is expected to pursue an IPO next year that could value it at about $120 billion, while home-renting company Airbnb Inc, valued at $31 billion, is also seen listing in 2019.

Stock Market Collapse Threatens Lyft And Uber IPOs

Stock Market Collapse Threatens Lyft And Uber IPOs Car ride-sharing company Lyft, No.2 in the sector behind Uber, has filed confidential paperwork to go public. Uber management has already made statements that it wants to go public in 2019. 

>> Lyft is racing ahead to an IPO of leaving Uber in the dust. Reuters exclusively reporting Thursday that the second biggest US ride hailing app is close to hiring an initial public offering advisory firm. And that could put more pressure on Uber , already struggling with a range of scandals, says Reuters

Uber and Lyft compete heavily for market share, resulting in no really big difference on price. So it makes sense that drivers earn about the same for both services. Lyft trumps Uber in this one, as they’ve been able to fly under the radar and for the most part stay out of the negative spotlight.

High-profile tech unicorns such as Dropbox Inc and Spotify dominated the U.S. IPO landscape this year, but the recent turmoil in financial markets due to escalating trade tensions between the United States and China could dampen enthusiasm for offerings from Lyft and Uber.

Investors fear that stock market weakness could result in reduced interest in their road shows or fail to fetch them a reasonable valuation.

"Market declines mean that the offer price will be lower than otherwise. But there's a danger of waiting to go public as well - markets could go even lower, and the companies could raise less money if they waited longer," said Jay Ritter, an IPO expert and professor at the University of Florida.

Uber and Lyft's IPOs are widely seen as a litmus test for investor tolerance for lack of profitability when it comes to iconic technology unicorns.

New York City just became the first US city to set a minimum wage for Uber and Lyft drivers

New York City just became the first US city to set a minimum wage for Uber and Lyft drivers Drivers for Uber, Lyft, and other ride-hailing services will receive a wage per trip that corresponds to $27.86 per hour, or $17.22 after expenses. The rules will go into effect in mid-January. "New York City is the first city globally to recognize that the tens of thousands of men and women who are responsible for providing increasingly popular rides that begin with the touch of a screen deserve to make a livable wage and protection against companies from unilaterally reducing it," TLC chair Meera Joshi said in a statement.

Lyft has hired IPO advisor Class V Group LLC to work closely with management as they embark on Uber will have the larger listing and bigger fee pot, but firms could have a more prominent role and fee Meanwhile, this week Toyota Motor Corp. announced it was investing 0 million in Uber in a

Uber Technologies Inc is on track to go public next year and has no plans to sell its self-driving car research arm, Chief Executive Dara Khosrowshahi said Khosrowshahi, who has led the company for a year, said he was not concerned if rival ride-hailing firm Lyft went public first because he expected

The two companies have taken hits to their bottom lines in order to attract drivers and enter new markets, although they have made strides in recent years in narrowing their losses.

"The 'cab-hailing-system' has been antiquated and left as a dinosaur of yester-years. The good news for ride-sharing is that it's a market that has shown to be penetrable," said Jeff Zell, senior research analyst and partner at IPO Boutique in Florida.

"With autonomous cars on the horizon, it is anyone's guess where this sector goes in the future. But Uber and Lyft, as name-brand leaders, are leading the race and will have the war-chest to be major players for years to come."

Lyft's IPO is expected to commence after the SEC completes its review process, it said in a press release Thursday.

Reuters reported in October that Lyft had chosen JPMorgan Chase & Co , Credit Suisse and Jefferies as underwriters for its IPO.

The company was set up in 2012 by technology entrepreneurs John Zimmer and Logan Green, three years after Travis Kalanick co-founded Uber.

Jameis Winston, Uber driver reach settlement in sexual battery lawsuit.
Buccaneers quarterback Jameis Winston has reached a settlement with an Uber driver who said he groped her in 2016, according to the Tampa Bay Times’ Matt Baker. A sexual battery lawsuit was filed against Winston after the woman alleged the fourth-year quarterback grabbed her crotch in the drive-thru of a Mexican restaurant in Scottsdale, Arizona. She made the incident known last fall, leading to an NFL investigation that deemed her claim as “consistent and credible.” The incident led to a three-game suspension in 2018 for violating the NFL’s personal-conduct policy. The woman filed the civil suit in September seeking $75,000 in damages.

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