Introduction
Uber and Lyft are two of the most well-known ride sharing companies in the world, but they both started out as side projects. Today, they’re worth billions of dollars and have millions of users. In this article, we’ll take a look at how these services grew so quickly and what they have in store for their futures as publicly traded companies.
Why did Uber go public?
The reason Uber went public is simple: it wanted to raise money. As a private company, Uber has not been profitable and has had difficulty attracting investors in the past due to its lack of profitability. By going public and becoming a publicly traded company, Uber can now raise money from investors who are interested in making money off their investment rather than just being philanthropic with their dollars (although there will always be some investors that do this).
Uber also wanted to give these new shareholders an opportunity to make money on their investment by selling shares at some point down the line when they think the price is high enough for them or if they just want out altogether. This gives Uber flexibility when raising additional capital in future rounds as well; instead of having one big round where everyone gets diluted equally (like Lyft’s Series I round), smaller rounds could be done where only those who participated previously get diluted while others get none at all
What is the value of Uber’s IPO?
Uber is valued at $82 billion, making it the largest IPO in history. The company’s market cap is more than Ford and General Motors combined. It’s worth more than the GDP of Iceland–and those are just a few examples of how much Uber is worth compared to other publicly traded companies.
How did Uber grow so fast?
Uber is a service model, not a product.
Uber is a platform. Uber is a marketplace. Uber is a technology company. Uber has created multi-billion dollar valuations by creating new markets for ride sharing and on-demand delivery services that were not previously available to consumers or small business owners before it was launched in 2009 as an app on smartphones with just two car types available (black sedan and SUV).
What is Lyft?
Lyft is a ride sharing company that competes with Uber. Lyft’s valuation is $15 billion, and it is expected to go public in March 2019.
Lyft was founded in 2012 by Logan Green and John Zimmer, who wanted to create an alternative for people who wanted to share rides but didn’t want to drive themselves or use public transportation. Lyft operates on a peer-to-peer model where drivers can sign up as independent contractors with their own vehicles, or they can rent cars from Lyft directly through its Express Drive program. Lyft also offers non-driver passengers opportunities for paid rides through its fundraising platform Round Up & Donate (RUD), which allows passengers who don’t have cash on hand at the time of their trip but would like to contribute financially towards charity organizations such as Autism Speaks or the American Cancer Society Cancer Action Network (ACS CAN).
Why did Lyft go public?
Lyft, the second ride-sharing company to go public after Uber, began trading on Nasdaq on Friday. Its initial offering price was $72 per share and it closed the day at $78.29 with a valuation of about $23 billion. That’s a far cry from Uber’s IPO price of $45 billion and subsequent first day gain of 14{a5ecc776959f091c949c169bc862f9277bcf9d85da7cccd96cab34960af80885}.
Why did Lyft decide to go public now? The answer lies in its history and future prospects for growth:
- Lyft has been around since 2012 but only recently started making money through its ridesharing service as opposed to other sources such as food delivery or scooter rentals (the latter being another source of revenue). This means that it has less cash flow than competitors like Uber which have been profitable since their inception; however it also means that they’re not saddled with any debt payments either!
- They’re looking ahead at an expected IPO next year which could raise anywhere between $2 billion-$6 billion depending on how well this one goes today (and whether or not they decide against raising capital).
Ride sharing companies like Uber and Lyft are among the fastest growing startups in history.
Ride sharing companies like Uber and Lyft are among the fastest growing startups in history. They have grown to over 100 million users, over 10 million drivers and 1.5 billion rides per month since their inception.
Both companies are currently valued at over $60 billion with Uber being worth around $70 billion while Lyft has a valuation of around $15 billion.
Conclusion
Ride-sharing companies are among the fastest growing startups in history. They have disrupted the transportation industry and created new jobs for drivers around the world. In addition to being an innovative business model, ride sharing has also been a great investment opportunity for investors who were able to get in early on these companies before they went public.