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.
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.