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| Lyft valued at $24bn ahead of share market debut | Lyft valued at $24bn ahead of share market debut |
| (about 2 hours later) | |
| Ride-hailing firm Lyft has priced its shares at $72 amid strong investor demand, valuing the firm at $24.3bn (£18.6bn). | Ride-hailing firm Lyft has priced its shares at $72 amid strong investor demand, valuing the firm at $24.3bn (£18.6bn). |
| Lyft's shares are set to start trading on the tech-dominated Nasdaq index on Friday. | Lyft's shares are set to start trading on the tech-dominated Nasdaq index on Friday. |
| The strong valuation makes it the largest company to go public since China's Alibaba Group in 2014. | The strong valuation makes it the largest company to go public since China's Alibaba Group in 2014. |
| Lyft's main rival, Uber, is also expected to float this year. | Lyft's main rival, Uber, is also expected to float this year. |
| Technology-based firms Pinterest, Slack, and Postmates, are also scheduled to make their market debuts this year. | |
| Top of range | Top of range |
| Earlier in the week, Lyft increased the indicative price range for its share offer to $70-$72 a share, up from $62-$68 previously. | Earlier in the week, Lyft increased the indicative price range for its share offer to $70-$72 a share, up from $62-$68 previously. |
| Analysis: By Michelle Fleury, New York business correspondent | |
| Lyft's stock sale is a big moment for the tech industry. | |
| Shares in the ride-hailing company were priced at $72 a piece. This was at the high end of expectations. It suggests a strong appetite from investors ahead of the company's first day of trading as a public company. | |
| For a firm that is not yet profitable, it provides validation of its business model, one that has established it as the number two player in the US. | |
| Wall Street is clearly eager to take part in the massive growth in the ride-sharing industry. That bodes well for Lyft's rival, Uber which looks set to make its debut soon on the New York Stock Exchange. | |
| But there are risks: from regulatory uncertainty to the fierce competition likely to emerge as the autonomous vehicle market develops. | |
| And given its dual class share structure (Lyft is keeping voting control), investors are buying a little piece of a company in which they will have almost no say. | |
| Lyft was launched in 2012 by technology entrepreneurs John Zimmer and Logan Green, three years after Uber was founded. | Lyft was launched in 2012 by technology entrepreneurs John Zimmer and Logan Green, three years after Uber was founded. |
| It remains the smaller company, with a limited international presence. Uber is expected to be valued at about $120bn when it goes public. | It remains the smaller company, with a limited international presence. Uber is expected to be valued at about $120bn when it goes public. |
| However, Lyft's profile has risen over the last few years, as its larger rival was hit by controversy surrounding its aggressive corporate culture and data collection practices. | However, Lyft's profile has risen over the last few years, as its larger rival was hit by controversy surrounding its aggressive corporate culture and data collection practices. |
| Lyft now accounts for about 39% of the ride-share market in the US, up from about 22% in 2016, the company says. | Lyft now accounts for about 39% of the ride-share market in the US, up from about 22% in 2016, the company says. |
| Lyft's revenues doubled in 2018 to reach $2.2bn, compared with $1.1bn in 2017, according to its filing with the US Securities and Exchange Commission (SEC). | Lyft's revenues doubled in 2018 to reach $2.2bn, compared with $1.1bn in 2017, according to its filing with the US Securities and Exchange Commission (SEC). |
| However, its losses also increased. The company lost $911m in 2018, up from $688m in 2017. | However, its losses also increased. The company lost $911m in 2018, up from $688m in 2017. |