Lyft, the second largest ride-hailing company in the United States, still plans to steal a march on larger rival Uber Technologies by becoming the first to IPO this year.
It plans to launch the roadshow for its Initial Public Offering (IPO) during the week of March 18, according to sources cited by Business Insider. Uber is also busy with its IPO, which is now expected to take place after Lyft's, most likely by the middle of the year.
Analysts said Lyft could be valued between $20 billion and $25 billion in its IPO. This pales in comparison to Uber, whose IPO might fetch $120 billion, making it the largest in history.
Uber CEO Dara Khosrowshahi said Uber is on track for a 2019 IPO. He isn't concerned that rival Lyft goes public first because he expects enough demand for both companies. Lyft and Uber, however, have seen incomes fall as they fight to attract drivers and enter new markets. Uber has also been seeking new areas of growth, including food delivery services.
Dow Jones reported that Lyft might make its filing public as early as next week and is planning on listing its shares on the NASDAQ Composite.
Some analysts see Lyft's insistence on "IPOing" earlier than Uber as part of a plan to gain whatever edge it can on its far larger rival. They say Lyft is aiming at institutional investors eager for a crack at the still booming ride-hailing market.
Waiting for Uber to IPO in the middle of the year might be too long to wait for these investors. The only other option then is Lyft, which while smaller, still promises a fair return on their investment.
Lyft apparently doesn't view their IPO as a means to quickly earn a lot of cash as a marketing tool they can use to upstage the slower Uber. And Lyft still isn't a household name like Uber, especially outside the United States where Uber enjoys a massive in key markets in Europe and Asia.
Beating Uber to become the first ride-hailing firm to IPO will be a huge publicity boost for the second largest ride-hailing firm.
"Lyft would get a lot of publicity and visibility if they upstage Uber with an IPO first," said Steve London, a lawyer at Pepper Hamilton LLP, one of the largest corporations in the USA.
