The ride hailing service has continued their exponential growth and have filed IPO documents, Uber is expected to follow suit
Lyft is slowly but steadily beginning to step out of competitor Uber’s shadows as they continue with their aggressive expansion strategies. On Friday, March 1, 2019, the web based ride hailing service announced their filing of IPO documents with the US Securities and Exchange Commission (SEC). Despite only functioning in US and Canada, Lyft has been a growing cause of worry for Uber, who were hit by a flurry of controversies in the last two years. However, Uber is expected to initiate their own IPO proceedings in the near future.
Despite being founded in 2007 (under the name ‘Zimride’), Lyft was quickly overtaken by Uber. Since its inception, Uber has gone on to become a global ride hailing service provider and has diversified into other services as well. However they were rocked by major controversies in 2017 which resulted in a massive PR blunder for the company. Lyft utilized this window by upgrading their technology, growing their workforce of drivers and riders, and began aggressive marketing campaigns. Their timely efforts saw them reap great dividends as by December, 2018, Lyft had accounted for 39% of the market share in the US.
Lyft also utilized driver friendly policies to encourage their workforce. After going public, the company announced cash compensations for drivers, who can utilize the money to buy shares in the firm. Both Uber and Lyft, are currently locked in a race to eliminate personal car ownership. A public listing can assist Lyft significantly, as they can now look forward to implementing automated self-driving technology they have been working on.
“We are laser-focused on revolutionizing transportation and continue to lead the market in innovation, we have established a scaled network of drivers and riders, or users, brought together by our robust technology platform that powers millions of rides and connections every day.” Lyft stated in the S-1 document submitted to the SEC as a part of their IPO filing.