On Friday (March 1st), the Lyft Inc. had edged closer to be the first among all ride-hailing service providers to go public, as it had filed for an initial public offering, unveiling the company’s financial performance to the public for the first time.
Lyft had been growing fast, but its expenses had also been increasing exponentially. Nevertheless, the money-losing, but fast-growing ride-hailing service is expected to be valued at around $25 billion, at least two sources familiar with the subject matter revealed on Friday, the 1st of March.
Lyft had revealed a 220-page document on Friday at its IPO filing which provided a complexion of a company with higher growth, improving financial dynamics but extending expenses and losses. According to the data released on Friday (March 1st), Lyft now owns nearly 40 percent of the US ride-hailing market.
Never the less, the company also cautioned the investors that further growth could come at an expense of further loss, as the company has already been drowned in deep red. The Lyft Inc. had managed to grasp more market share than its better-funded & profit-making rival Uber, yet the filing had raised questions whether the company would be able to sustain growth and achieve profitability.
A managing partner of emerging markets for accounting and advisory firm CohnReznick said, “We will see how they perform as they have to start filing quarterly and managing shareholder expectations. Can you achieve the growth expectations? Can you continue to grow at the rate that you’ve been growing? That’s going to be the real measurement stick over time. ”