Lyft Prepares To Launch IPO
Lyft Inc. has filed publicly for an initial public offering (IPO). The application to the Securities and Exchange Committee reveals everything about the planned IPO but the actual share price. Lyft is apparently seeking a market value of as much as $25 billion. Lyft co-founders John Zimmer and Logan Green, the chief executive officer, will retain a controlling stake in the company through shares that are each equal to 20 ordinary shares.
Lyft’s IPO has been highly anticipated. The company has experienced exceptional growth in recent years, growing from 22 percent market share in December 2016 to about 39 percent today. Bookings generated $1.9 billion in revenue in 2016, $4.6 billion in 2017 and $8.1 billion last year. Despite the growth, the company has remained unprofitable, losing $911 million on $2.2 billion in revenue last year.
In the filing, Lyft also detailed a plan to reward some of its loyal drivers as part of the IPO. Eligible drivers will receive up to $10,000 in cash bonuses with the option of putting the bonus towards purchasing the company’s stock. The bonuses are expected to be paid around March 19. Lyft currently has a pool of 1.9 million drivers, of which 1.1 million are considered regular drivers.
According to the information in the filing, Drivers who have completed at least 20,000 rides as of February 25, 2019 will receive a bonus payment of $10,000. Drivers who have completed between 10,000 and 20,000 rides will receive bonuses of $1,000. Drivers who’ve served on the company’s Driver Advisory Council are eligible to receive $1,000. If a driver is eligible for multiple bonuses, they’ll receive the one payout that is the largest.