Lyft job offers were a scam

New NcEf26
May 10 30 Comments

Everyone who took lyft 300k+ offers that we’re mostly stock got bamboozled by lyft. The supposedly high valuation they had was a lie, this stock could hit 30$, in which case some of you probably saw a hit on TC instead of the big raise you thought. It’s also why google doesn’t match paper money, it’s just that - paper.

Another thing I want to add here is that funding rounds are not reliable estimations of company value on the public market. Money is cheap, VCs need somewhere to put it. Surely there are financial analysts inside lyft and at large banks who had a realistic understanding of their real public market valuation. This was not and will never be communicated to rank and file employees

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TOP 30 Comments
  • Google Mr. Glass⠀
    That was the most probable outcome. Getting rekt I mean.
    May 10 0
  • LinkedIn ZerotoIPO
    I had an offer 6 months ago, gave me stock valuing $29.99 a share. Not a huge upside, but at least it is still 65% more
    May 10 5
    • Amgen Mrmephisto
      I signed an offer this week for Uber...I mean for me I guess it’s all upside if the stock price is low then the monthly average means I get more shares from the lump sum cash value. I’m not too worried about the long term since it’s just such a shitty day thanks to Trump and there’s probably a shit ton of shorting going on to make some money to offset losses elsewhere. If there’s a rally the stock should rally hard with the rest of the market.
      May 10
    • LinkedIn ZerotoIPO
      Agreed. Whole market has been volatile with chinese trade wars
      May 10
    • Amazon PeterPIPer
      Hey were at $47 per share in October. Had an L8 offer from them.
      May 10
    • Salesforce sk8er
      Wow what is L8 offer like? 2M RSU?
      May 10
    • eBay ebabe
      Director?
      6d
  • Google zOKe30
    The high valuation was real, that’s no scam. The public markets have valued it differently and it slid, but that’s the risk you accept for a newly public company.
    May 10 3
    • New NcEf26
      OP
      I disagree with this. The valuation was real in the sense that VCs were willing to pay for equity at the high valuation price. But that’s not reality, there is an overflow of investment money with nowhere to put it. That money is cheap. They are happy to spend 20-50% more of that money than real prices.
      May 10
    • Amazon n0v
      If someone is putting real money down, that's real valuation. VCs are usually better than the market at valuing. It's the market that has changed in the last year. Cash is tighter, and there's less tolerance for not being profitable.
      May 10
    • New NcEf26
      OP
      This isn’t how current venture capital works.
      May 10
  • Google əๅɓoo⅁
    Paper money is paper.
    May 10 1
    • Amazon hot 🍞
      I'll take all this unwanted paper money
      May 10
  • LinkedIn anbgjdy
    Pre-IPO offers were given out at a preferred price lower than the current public market price. So how were the offers a scam again?
    May 10 0
  • Amazon hot 🍞
    I like paper money
    May 10 0
  • Facebook public2
    Yea duh. It's not a scam, it's business. If you don't have a basic understanding of a business don't join or at least don't complain.
    May 10 2
    • Microsoft wizard1
      It’s a business that’s been subsidized by vc money lol. There are literally no economies of scale here. Costs rise with scale. Good luck with that self driving car nonsense. We are at least a decade or two away for that to become mass market cuz the only way to realize that is via new infrastructure where idiots aren’t in control of their vehicles.
      May 10
    • Facebook public2
      Uh, more like a couple of years hopefully. 20 years to get the last few percent on self driving would be ridiculous
      May 10
  • Google ckxkkand
    How much did they value the stock at when they gave em out? Shouldn’t it match up with the private market valuation (which is typically less than the valuation when they go public)?
    May 10 1
    • Amazon hot 🍞
      They are paying people in hype, like hype is a currency. 3.50 hypes
      May 10
  • Coupang Ka-chow!💥
    Lyft offers are offered in dollar values, not share values, and is based in a 20 day trailing period at the time of the initial grant. So... it’s actually not fake money.
    May 10 0
  • Oracle aham
    Story of most pre IPO tech companies. There is always hype and only some live up to it!
    May 10 0
  • Palo Alto Networks Clowns
    Facebook went from the $50 ipo to low 20. Lots of people laughed... But guess who is laughing now all the way to the bank ...
    May 10 1
    • New lowNW
      Facebook has a clear path for profitabilty. You can't compare an ad based consumer internet company which prints money to a very high operational cost company losing billions every year.
      May 10
  • Lyft ztni32
    Fuck excitement. Take the money. A lot of people got screwed at Lyft with equity offers and there is a mass exodus (not new for public companies though). It’ll be a long time before our stock really takes off. VC was our welfare now we’ve got to find a real path to profitability and it ain’t looking good people. Not to mention that our leadership sucks. Nice people and all, but no fucking clue as to how to really compete. We’re in the cost cutting game right now and that’s not a growth strategy. Needless to say, I bought a shit ton of Uber around 36 a week or two ago.
    6d 1
    • Qualtrics ❄️IsComing
      You believe Uber figured out a path to profitability? IPO is the event when growth above all should be over and focusing on profitability. Btw, what makes you bought all your Uber stock at 36? 😂
      6d
  • eBay ebabe
    Sure it’s a gamble, but startups are exciting and full of very smart and motivated people. You’ll learn more in less time and enjoy doing it. You can negotiate your way to the same base cash as other companies TC if you’re good at negotiating. That way if the stock tanks after ipo, you’re still golden because your base was higher than the old place.
    May 11 0
  • Qualtrics ❄️IsComing
    OP has little understanding of how private funding works. There’s high risk and lock in period associated so you don’t compare with public companies and tell that when negotiating. I joined Qualtrics 3 years ago with $1B valuation and cashed out stock at $8B. I hard negotiated for more cash and turned down much higher stock offer. Did I make a mistake? Maybe, maybe not. I used the cash to live better life and reduced the risk by diversifying my investments.
    May 10 0
  • It depends on when the offer was made
    May 10 0
  • New lowNW
    OP, did you get bamboozled?
    May 10 0

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