The ride-hailing business has gotten increasingly popular over the last few years, especially in big cities where owning a car is more of a hassle than a benefit, and ride-hailing services like Lyft, Uber, and the new arrival InDriver, are happy to fill the void. Lyft has taken a huge step in advancing the business, by filing for an IPO.
Lyft filed a confidential initial public offering today with the U.S. Securities and Exchange Commission, getting a step ahead of its rival Uber. Uber initially planned to file for an IPO in the second half of 2019, but has since moved the timetable up to the first half.
Despite how popular ride-hailing services are among consumers, for investors, they are not very profitable. Both Uber and Lyft have spent quite a bit of money trying to one up the other, and it has been affecting their bottom lines. Many are questioning the viability of ride-hailing services going public and if this is a good move on not. One thing to keep in mind, however, is how unpredictable and volatile the market is right now. Considering the fact that the market might get even worse in 2019, it may be a smart move for companies like Lyft to go public sooner rather than later.
