Lyft Achieves To Be Valued At About $24.3 Billion

In its IPO (initial public offering), Lyft Inc is valued at about $24.3 Billion. This number is more than the firm had highlighted as investors neglected doubt over its pathway to be a beneficial firm. Lyft’s IPO sets the stage for the stock market launch of bigger competitor Uber Technologies Inc, which Reuters reported is supposed to kick off in April 2019. Numerous investment bankers have told Uber that it might be valued at as much as $120 Billion.

The IPO witnessed success despite Lyft’s steep losses, disapproval of its dual-class share structure, a few concerns over its plans for sovereign driving, and for fear of missing out on the firm’s strong profits growth. The ride-hailing sector is expected to develop rapidly in the upcoming years, as young millennials in huge cities select not to purchase their personal car.

On a similar note, Lyft came into the news as it announced a new attempt to help its freelance workers better run their finances. The firm is taking some decisions in a battle to retain more and more drivers. The firm revealed a huge set of novel financial incentives for drivers. It includes debit cards, no-fee bank accounts, deals on rental cars, and vehicle maintenance. Also, Lyft will be opening a set of brick-and-mortar repair centers across the country. In these centers, drivers will get concessions on car washes and maintenance.

This is supposed to be a novel way for Lyft to assist drivers to save money without essentially rising fares, which might drive down demand. This could be as well achieved by falling the percentage of every payment the firm takes. However, it might lead to minimize the firm’s revenue. And same as the majority of driver-focused revelations from ride-hail firms, it’s intended to promote drivers to stop app-switching and just pick a side.