The ride sharing company Lyft has beat the biggest rival company Uber Technologies during the filing of a public offering which could test the appetite of investors for such attractive but loss giving technology companies. This company was valued at $15 billion, but it did not describe the quantity of shares to be sold or price at which shares are offered in the confidential filing along with Securities & Exchange Commission this Thursday. The Initial Public Offering is expected for the 2019’s first half, the sources have reported Reuters.
Uber seems to get an IPO in the next year which can value it to $120 billion, and the home renting business Airbnb, valued at $31billion, will also appear in the listing of 2019. The high profile technology companies like Dropbox and Spotify dominated United States IPO landscape during this year, however the recent disturbance in the financial markets because of rising trade war between the US and China can possibly damage enthusiasms for the offerings from Uber and Lyft. The investors are worried about the stock market shortcomings which could reduce the interests of people in them. Lyft and Uber’s IPO are widely seems to be litmus tests for the investors tolerance due to decrease in profitability for such iconic tech unicorns.
Both these companies took hits to the bottom lines for attracting drivers as well as entering the untapped markets, although both of them strides to narrow their losses in the recent years. The market of ride sharing seems to be permeable, says Jeff Zell, the senior analyst & partner of IPO Boutique, Florida. But Lyft and Uber, as leaders in this segment are leading this race to become major players in coming years. The IPO of Lyft seems to begin after the completion of review process by SEC, it said during the press release this Thursday.