Published

Report: Lyft Hires IPO Advisor

Lyft Inc. has hired Class V Group to help plan for an initial public stock offering, sources tell Bloomberg News.
#economics

Share

Lyft Inc. has hired Class V Group to help plan for an initial public stock offering, sources tell Bloomberg News.

The ride-hailing company is expected to begin talks with potential underwriters as early as next month and aims to tender an IPO by April, according to the news service. Lyft declines to comment, except to say a “variety of factors” will determine if and when the company goes public.

Earlier this week rival Uber Technologies Inc. said it is on track to launch an IPO in the second half of 2019. Bloomberg notes that the close timing of the two deals will increase competition for financing—banks can’t underwrite IPOs for two direct competitors—and boost market valuation.

Lyft recently raised $600 million in a financing round led by Fidelity Management & Research Co. The company also is considered to have strong ties with Goldman Sachs Group and Morgan Stanley.

Despite recent stumbles, Uber still is valued at about five times more than Lyft ($76 billion vs. $15.1 billion). Toyota invested $500 million in Uber earlier this month.

 Lyft also has partnered with several carmakers, but its relationship with General Motors has soured somewhat since the carmaker invested $500 million in the startup two years ago. Plans for GM to supply discounted vehicles to Lyft drivers and other collaborative plans never materialized, and GM President Dan Ammann resigned from the ride-hailing company’s board of directors in June.

RELATED CONTENT

  • Porsche Doubles EV Target for 2025

    Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.

  • Inside Ford

    On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.

  • On Global EV Sales, Lean and the Supply Chain & Dealing With Snow

    The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future

Gardner Business Media - Strategic Business Solutions