Word just got out that Uber is trying to go public at a $120B valuation. But it looks like Lyft is trying to beat its arch-rival to the punch!
The Wall Street Journal just reported today that Lyft picked a dream team banking squad led by JPMorgan Chase to lead its IPO, scheduled for early ’19.
Lyft’s banking on a market cap well above $15.1B, the valuation it scored in its latest private funding round in June so investors can hit their ROI targets.
And yes, Uber will be worth around 10x that but it would be a major score for Lyft to beat its ride-hailing foe to the public markets.
Ah, the IPOs!
Just like 1980’s Hulkamania, IPOs have been running wild in 2018.
VCs are getting their 10x, investors get in on the action, and founders get stinky rich. Oh yeah, baby. And even though most of them are unprofitable, they’re still scoring massive market valuations.
So when is this gonna go down?
As of now, Uber’s worth $70B. They’ve said all along they’ve planned to pop the public markets in the second half of 2019.
But according to the WSJ report, they could speed up their schedule and go live on the public markets as early as next year. Apparently Uber received valuation proposals last month from a Wall Street goon squad of their own in Goldman Sachs and Morgan Stanley.
This is often the final stage before a company officially hires a bank to underwrite its offering. As expected, Lyft and Uber both declined to comment.
Why are they fighting to go first again?
Well, there’s no sophisticated reason behind other than the obvious. Even though it’s worth less, Lyft wants to offer ride-sharing stocks first before a competitor gets to satisfy market demand for the hot industry.
Here’s a thing to watch. Lyft is US and almost car-only. Although it’s making its play with its direct-to-user micromobility play with bikes and electric scooters.
Uber, on the other hand, is worldwide, operating in 600 cities in 78 countries. Uber’s even teaming up with taxis around the world and ish.
(Editor’s note: Watch out for tomorrow’s lead story on that!)
UberEats > Lyft
Another factor to consider. Uber’s UberEats—their fast-growing food delivery service—alone (rumored at $20B) could be worth more than Lyft as a whole.
Here’s the kicker: Morgan Stanley and Goldman Sachs’ valuation targets reportedly come from Uber’s non-rides businesses. In other words, Uber’s valuation doesn’t even come from its core business.
Let that sink in for a second.
Should Lyft beat Uber to the punch, that obviously is a huge win. Despite its smaller business, when it comes to hitching a paid ride, US app users look at Uber, then look at Lyft.
On the other hand, should Uber pull off the IPO first—especially in light of this news—going public would mark a huge symbolic victory for CEO Dara Khosrowshahi who took the reigns last summer on the heels of #MeToo scandals and a mass executive exodus.
$137 Billion On The Line With Jeff and MacKenzie Bezos Divorce
A year after becoming the richest person, Jeff Bezos, founder of Amazon.com, is getting a divorce from his wife MacKenzie. The news broke in the below tweet from Jeff last Wednesday.
— Jeff Bezos (@JeffBezos) January 9, 2019
MacKenzie is said to have played a significant role in Amazon in the early years of the company. If the split goes as predicted, she will then become the richest woman in the world.
Investors will be comfortable once the divorce does not affect the growth and profitability of Amazon.
What Are Your Favorite Christmas Songs And How Much Money Do They Make?
Christmas is the gift that keeps on giving for a select group of singers, songwriters and producers. An article in Forbes recently pegged U.S’s Christmas Music as the “Global King” compared to other genres of music like Pop.
So how much money are they talking? CNBC’s Tom Chitty explains.
This Uber Killer Wants To Drive You Around In A Lambo…For £5
While all that was going on, another ride-hailing service called miwhip (“my whip” — get it?) came out of left field, announcing their desire to drive ride-hailers around in luxury sports cars like Lamborghinis, Ferraris, and whatever the hell else the heart desires.
But as usual, there’s a caveat…
Not going to call it a bait-and-switch, but here’s what Forbes wrote on their Instagram:
A new Uber rival in London, miwhip, lets you travel in gold supercars, and trips can cost as little as £5.
The ride-sharing app launched at the end of last month with an Austin Powers villain-worthy Lamborghini Aventador, Ferrari 488, Rolls Royce Ghost II, Mercedes G Wagon and McLaren 720s.
Within 48 hours of receiving the private hire operator license from Transport for London, miwhip spent over £1.5 million on supercars.
Miwhip takes 10% less commission than their competitors and offers daily cash outs as an homage to the five cofounders’ father, who was a mini-cab driver who worked to juggle work and family life.
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A new Uber rival in London, miwhip, lets you travel in gold supercars, and trips can cost as little as £5. The ride-sharing app launched at the end of last month with an Austin Powers villain-worthy Lamborghini Aventador, Ferrari 488, Rolls Royce Ghost II, Mercedes G Wagon and McLaren 720s. Within 48 hours of receiving the private hire operator license from Transport for London, miwhip spent over £1.5 million on supercars. Miwhip takes 10% less commission than their competitors and offers daily cash outs as an homage to the five cofounders’ father, who was a mini-cab driver who worked to juggle work and family life.