Lyft the largest competitor of Uber has announced its share price placing it at $72 on Thursday. The company was also valued to be at around $24 Billion. This is a huge step from what was the proposed price earlier on which was set at around $62 to $68 a share. This is as a result of increased investor interest in the start-up businesses that are expected to grow over the years. This comes after other starts ups like Uber and slack are also expected to go public this showing an increased interest on the so-called unicorns.
The share is set at the price despite the company’s loss of about $911 million in 2018. However, Kathleen Smith a manager of IPO- focused trends states that the public market does not focus on prosperity trends since whatever is being witnessed currently is staggering. However, other commenter’s have been noting that Lyft showcases the ability to grow and will attract the investor’s eyes.
Uber which is the largest cab ailing app in the US, has been facing a number of challenges in the recent past thus allowing for Lyft to grow. The company was involved in cases whereby it was accused of unethical workplace culture. This led to some users boycotting the use of the app. Lyft at this time was able to seek more funding and expand to other cities. However, Uber has also been engaged in a ruthless expansion program which has enabled it to expand globally.