Sneaky! Uber will play catch up for the first time.
- Dexcom xXhT11I believe several image conscious companies have made Lyft-only policies. Maybe they still have momentum from Uber's issues?
- LinkedIn 🍿❤️Can anybody educate me why does the timing matter? Like why does it seem like whoever IPOs first wins?
- Google / EngUUKg61IPO is first time when companies are evaluated on public platform. Before IPO, any coke addict can value the company at any figure. The private valuations matter much less post IPO. As such, it is critical to time IPO depending on market conditions. If market in general is bullish, one tends to get higher valuations.
For the first IPO part, this particular area of transportation is uncharted territory.The uber/lyft model of business where the company owns almost 0 real world assets , is a new way of doing business. It will be very interesting to see how traditional retail and asset management companies values such stocks. First one would have advantage of surprise and setting the benchmark.Dec 6, 20187
- Uber / R&DjidaoCompany usually also raise money during the IPO, a higher valuation means less dilution when raising cash or getting more cash.
For the employees, if they IPO at a low valuation due to the market, then either selling now will be some kind of loss, or if they hold for the market to recover, then they will pay additional tax on capital gain.
So all in all it's better to IPO at a high valuation, but in the long term it doesn't really matter.
- Snapchat MiseryLifeThey FILED for IPO. They didn’t go public yet. Who cares if market is bearish now? 6 months ago the market was amazing. And it takes like 6 months to actually IPO.
Well done Lyft. Uber and Lyft can BOTH win. There’s enough to be innovated upon in the transportation/distribution industry that we need more of this!!
- Cashing out and soaking up investor dollars in the segment before Uber can.....smart
- Dang, wish I didn't bomb my Lyft phone screen a few weeks ago now!
- Bullshit. Seems like a ploy for an acquirer to take them off the table at an unreasonable valuation.
Me thinks potentially Amazon, Google or some car company.
- Handing what to them? We're both burning cash. Also why would Amazon buy them? Buying a whole ride sharing business just to have a fleet of delivery cars is stupid. Also car companies can't afford Lyft. Google? They're probably too afraid to affect their balance sheets with all the losses
- Submitting a draft registration is not the same as filing an actual S-1. We don't know shit yet. No number of shares, no price range, no date.
So basically there's no point on this dumb post.
They can very well withdraw in 2 months and hold if the market starts looking very bearish.
...And smart people here saying "congrats" and shit makes me think that nobody here knows how public markets work, which is kind of worrisome, since many people here seem to take decisions on what stock to buy and sell based on their shallow interpretation of the market.
- That’s just a calculation. And that simple math is definitely not how an IPO is priced. For starters, we don't know how the stock pool is distributed exactly (common stock vs preferred stock). We also don't know exactly a what rate did early and late investors bought their shares. We don't have a good model to understand market demand and we don't have industry comparables which is why is kind of a big deal that Lyft is going public before Uber.
Private valuations are meaningless to public markets. An investment banker will look at many things including economic climate, financial statements and general sentiment when pricing an IPO. Successful IPOs work on the presumption of high demand, so pricing it too high might hurt you.
Even if the last investor bought at price of 47 USD, that doesn't mean that they are pricing above that.
Also for people here thinking that Lyft employees will get automatically rich after an IPO, there's a 6 months lock-up period before a common stock holder can sell. In 6 months after a couple of bad events, things can go south, and late employees could be easily in a state in which they are barely profitting from their exercised options.
So basically, it's not that straightforward.
- Either way. Knowing the exact price per share of your last valuation doesn't really give any hint that can indicate an IPO price since we also don't know how many shares will be issued for public trading / how much they are targeting to raise.
Also, it's impossible to not have preferred stock. No institutional investor will ever invest without getting some type of preferred stock.
Most likely employees and founders have common stock and all the large investors have different types of preferred stock.
- The last few investment rounds put a floor on the IPO price otherwise those investors would not allow the IPO to go forward. Live and learn. I will repeat this for you once again. Lyft is not a crooked company it is a white unicorn, therefore, additional share issuance for IPO will be minimal. There are not special classes of shares unlike most crooked unicorns read the ubc unicorn research study.
- Amazon gemaltoI think Uber benefits the most here. They can see what the reaction is and gauge whether they want to wait or move forward. No skin off their backs.
- It’s so irony, the folks who actually put their sweat and blood are not going to be rich incase of IPO success with all the odds. My Uber driver yesterday said he lives close to Yosemite and go back home every four days, sleeps in car. Seriously? They are the one for the Uber/Lyft to succeed and they will be much poorer since these companies are trying to get rid of them. Unlike other IPOs, the rich employees will become more fat with Drivers’ sweat and blood. https://www.forbes.com/sites/eriksherman/2018/12/08/uber-and-lyft-ipos-will-make-many-people-rich-but-not-the-drivers/amp/ . It’s NOT fair! Wait a minute, and majority of Lyft/Uber employees travel by public transportation to work ... Because they know their own ride services are fucking expensive and not convenient.. Hipocrites :)
- An IPO before Google Wymo becomes mainstream is important for self driving companies, Wymo mainstream will kill their valuations
- Uber didn't replace Sanfransico taxi company overnight, but they did eventually. Waymo if successful in Arizona can replace Uber / lyft much faster than they replaced taxi companies as it would not have scale challenges of human drivers. Self driving is future, App driving will be legacy. Lyft Uber r Yahoo's of future
- Terrible timing based on market conditions. They’re either testing the market hoping they (early stage VCs) can cash out or need funding to continue growing (tapped out other sources).
- Amazon NorthmanMore complicated than that - there are also tons of employees who want liquidity for their RSUs, looming specter of RSU expirations, and the fear that if they miss the IPO window now a real recession will kick in and close it for 2 years. Late stage investors are more likely to be antsy for liquidity than early stage folks right now. But yeah, other sources are likely getting squeamish about valuations in this space and wany public market validation too.
- Amazon bababoboDoesn’t matter. Companies can file S-1 with SEC and revise it a hundred times before they actually go public. What’s the point of this post anyway?
- Both Lyft and Uber would be f***ed up just like ours given current economic conditions and cash reserves in these companies
- Uber (Admin)It's really irrelevant. Even what happens to Uber's stock price in the short-term is irrelevant. If we're doing the right things, the price will go up over time. Equity isn't salary; it's ownership so we care.
- Google / DataCRER20moreStock market will tank before 2020. Better to IPO ASAP or wait 5 years. I guess neither Uber or Lyft could wait 5 more years.
- @Golduser only when they stand up to the hype and overcoming: Being non profitable and losing billions, no tangible assets, Waymo’s competition with self driving cars, nearing recession, already subsidized trips, struggling self driving units, incredible cash burnout - with all these it takes at least 10 months for employees to cash out RSUs and a lot can happen in between. Good luck to them ...
- Apple Icml2017I agree, no point thinking in short term. If Lyft and Uber do well they will at least hold on to their valuation and/or stock price will increase with time. It doesn’t matter if Uber or Lyft IPO’s first; both can coexist and flourish. Just IPO’ing and then having a sharp drop in stock price (eg Snap) won’t be of much use. But with that being said, this is an uncharted territory for public companies; so it will be interesting to see how stock market reacts.
- Lyft has tried to use the recent bad PR for Uber rather than playing on strength. Interesting to see how it turns out.
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- Amazon / Engwhaaat!no!moreThere was a new that Amazon is interested in buying Lyft.. True?
- Weird, lunch @ Lyft all week included Ketchup in all the food areas, for the first time ...
- Medidata Solutions Hobbesian@Lyft’s Exec Management: Congrats! Y’all just hit the jackpot. You’re probably going to be okay if you decide to retire early. @Lyft Employees: Ladies/Gents consult an accountant concerning capital gains taxes if you believe you’ll see any monies coming your way. Also, your culture will change (maybe not significantly at first but you’ll see it soon enough if you decide to stick around) and the main driver will be profits. Remember your exec management team have to report every 3 months the status of the financials of the business you’re in. What does that mean for you? You better be producing and making sure you keep yourself relevant via playing the politics hardcore now otherwise, your seat’s for rent. Welcome to the big boys club folks we have apathy, roughly a 10% workforce reductions yearly, incompetent people in critical role and many other treats and games. Hope you enjoy the ride! :-)