Lyft files confidential paperwork for a 2019 IPO

Lyft has filed confidential paperwork with the SEC for a proposed public providing, the corporate introduced. The disclosure follows information in August that the corporate had employed  Class V Group LLC to regulate the method with a March or April providing date in thoughts.

Uber additionally has plans to release an IPO in 2019, or so the corporate’s CEO, Dara Khosrowshahi, has prior to now mentioned. As of July, Lyft had 28% of U.S. marketplace percentage, in line with Second Measure. For nearly all of its life Lyft has been caught in Uber’s monumental shadow. Unlike its competitor, Lyft has now not long past world (even though it’s in Canada), hasn’t ventured into as many industry hands, and has been slower general to amplify.

But its slower enlargement appeared to repay closing 12 months when Uber started to implode. In 2017, Uber used to be stuck evading legislation enforcement, attractive in doubtful moral practices, and having an general poisonous paintings atmosphere. Lyft emerged instead. The local weather allowed Lyft to develop its percentage of the marketplace swiftly, from 15% to 26% in one 12 months.

Also within the closing two years, Lyft has grown its industry past easy experience sharing. In 2017, it introduced it could expand self sufficient automotive generation thru a partnership with tier-one car provider Magna, placing it in pageant with Uber and Google. Lyft additionally expanded into motorcycle sharing thru its acquire of Motivate, which operates main techniques like Citi Bike and Ford CrossBike.

Lyft is these days valued round $15 billion greenbacks and surpassed $1 billion in income in 2017. Uber, in the meantime, earned just about $3 billion in income within the 3rd quarter of 2018 by myself and not too long ago raised cash at a $72 billion valuation. And Wall Street is sizzling for Uber. The Wall Street Journal stories that the corporate has won proposals estimating Uber’s price to be up to $120 billion price in an IPO. Uber has additionally indicated it wouldn’t be successful for three years, in step with the file.

For Lyft, that implies going public previous may give it a chance to polish in its personal proper.

Rob Metzger, professor at Gies College of Business on the University of Illinois, says there are benefits to being first to move public. If one corporate is going first and there are issues throughout its time as a public corporate—for example, regulatory problems or different possible friction issues for the industry style—it would hose down the possible valuation for whoever is going public 2d. “If we’re smaller, however we’re higher run and our working metrics are robust, I’d reasonably be first to inform that tale in order that I’m now not—from a valuation point of view—within the shadows of the opposite one,” Metzger says.