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Ride-hail App Lyft is Going Public and Chooses JPMorgan to Lead Their IPO

Lyft files a confidential draft registration statement with regulators becoming the first major ride-hailing company to officially launch its initial public offering, expecting to beat its competitor Uber. The company is expected to go public in early 2019 and its valuation is expected to exceed the $15.1 billion it previously was estimated to be worth.

By Saurav Bhandary   │Published: December 06, 2018

On Thursday, December 06, 2018, the ride-sharing company Lyft announced it has filed papers to go public. The company is expected to go public as early as the first quarter of 2019 and JPMorgan Chase & Co. will lead the offering along with Credit Suisse Group AG and Jefferies Group LLC., The Wall Street Journal reported.

It’s a big step in what’s largely considered to be a race to go public between Lyft and its much larger rival Uber that is currently valued at close to $120 billion and operates in nearly 70 countries world-wide.

According to The Wall Street Journal, Uber had 69% of the market, compared with 28% for Lyft as of October. Lyft peaked at 29% in August.

San Francisco-based Lyft, previously valued at about $15.1 billion in a private fundraising round, is one of the most anticipated Silicon Valley debuts in recent years. Its valuation is expected to exceed the $15.1 billion it previously was estimated to be worth.

Rival Uber is also planning for an IPO sometime in 2019 and is currently valued at close to $120 billion, according to the Reuters.

Lyft, Co-Founded by entrepreneurs John Zimmer and Logan Green in 2012, has raised close to $5 billion from investors. Scandals at Uber have given Lyft a chance to catch up in the ride-sharing race. In fact, Lyft made major gains in light of Uber’s various struggles.


References

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Farrell, M., & Bensinger, G. (2018, October 16). Lyft Picks Underwriters for IPO in 2019. Retrieved from https://www.wsj.com/articles/lyft-picks-underwriters-for-ipo-in-2019-1539707979

Franklin, J., & Somerville, H. (2018, December 06). Ride-hail firm Lyft races to leave Uber behind in IPO chase. Retrieved from https://www.reuters.com/article/us-lyft-ipo/ride-hail-firm-lyft-races-to-leave-uber-behind-in-ipo-chase-idUSKBN1O51AA

Hawkins, A. J. (2018, June 27). Lyft valued at $15.1 billion after new funding round. Retrieved from https://www.theverge.com/2018/6/27/17510350/lyft-value-15-billion-funding-round

Lockie, A., & Rapier, G. (2018, December 06). Lyft officially files paperwork for an IPO. Retrieved from https://www.businessinsider.com/lyft-reportedly-filed-paperwork-to-go-public-with-an-ipo-in-early-2019-2018-12

PR Newswire. (2018, December 06). Lyft Announces Confidential Submission of Draft Registration Statement for Proposed Initial Public Offering. Retrieved from https://www.prnewswire.com/news-releases/lyft-announces-confidential-submission-of-draft-registration-statement-for-proposed-initial-public-offering-300761224.html

Rapier, G. (2018, October 16). Lyft Chooses Wall Street Investors to Lead IPO. Retrieved from https://www.inc.com/business-insider/lyft-chooses-wall-street-investors-to-lead-ipo.html

Reader, R. (2018, August 31). Lyft vs. Uber: The ride-hail IPO race is on. Retrieved from https://www.fastcompany.com/90230841/lyft-vs-uber-the-ride-hail-ipo-race-is-on

Vengattil, M., & Rana, A. (2018, October 17). Uber IPO proposals value company at $120 billion: WSJ (A. Koyyur & S. Chakrabarty, Eds.). Retrieved from https://www.reuters.com/article/us-uber-ipo/uber-proposals-value-company-at-120-billion-in-a-possible-ipo-wsj-idUSKCN1MQ1N8

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