Lyft Corporation filed a private draft statement for registering with the Securities and Exchange Commission (SEC) for becoming an International public organization; it would be surpassing Uber by doing so. The early public offering comes at the start of every year. This would be giving Lyft an upper hand over the competitors.
The merchant bank’s head of research, merchant bank of the Manhattan Venture, in their discussion with the Business Insider, told that the firm is aware of this advantage and they would be benefiting from it as extensively as it could, all thanks to the benefit of the doubt. This company could not be easily valued since they don’t exactly fall into a particular category of firms.
Business Insider considered that it should be valued according to the same method in which Alibaba and such other firms are valued. The estimated fair value of the firm is somewhere in between 19 to 20 billion US Dollars.
Despite the current prediction and expectation, Uber and Lyft have been intensely suffering from the current economic position. This was reflected by the fact that Uber lost around 1 billion US Dollars in just the ending quarter of the previous year.
Lyft was not quite successful either. The firm was able to bring in almost 563 million US Dollars in the form of its revenue in the 3rd quarter of the previous year, this was almost 2 times as much as the previous one, yet the firm faced losses, which increased by around 60 million USD.
Rao also considered the fact that the exact economics of such firms are not known. There are dissimilar estimates and an enormous number. While some of the people believe that automation would completely transform the benefit while reducing cost by around 70 percent, but others would disagree.
According to the financial analysts, this loss might not be the actual representation of the scenario as the firms were not exactly examined by the perfect method. As this firm falls into a category of its own, judging it in accordance with the firm from another similar category won’t be reasonable.