Lyft Shares Soar on Nasdaq Debut After IPO

Lyft valued at $34.3b in first ride-hailing IPO

Around midday it was changing hands at $87 a share, up 20 per cent from the IPO price of $72. Zimmer likened the displacement of auto ownership to cable television cord cutters. The no. 2 United States ride-hailing company said in a statement that it priced 32.5 million shares on Thursday at $72 each, which was at the top of the marketed range.

Logan Green: 684,591 class A shares and class B shares worth $655.5 million at IPO prices.

The co-founder and chief executive officer of Lyft owns 684,591 class A shares and 7,689,182 class B shares and holds a 2.9 percent stake in the company.

"The ridesharing industry has become one of the most transformational growth sectors of the USA consumer market over the past five years with Lyft establishing itself as a clear No. 2 player behind the worldwide leader Uber", said Daniel Ives, managing director of equity research at Wedbush Securities, in a note to clients on Wednesday.

The next big test comes Friday morning when the San Francisco company's stock will begin trading on the Nasdaq exchange under the ticker symbol "LYFT".

Unlike Uber, which has developed its own self-driving division, Lyft has chosen to strike partnerships to expand in the sector, including with auto parts suppliers Magna International Inc and Aptiv Plc.

"Lyft is still losing a lot of money, so it's very much a jam tomorrow, not today, proposition for investors who are in for the long haul".

Meanwhile, Lyft parlayed a warm and fuzzy image that it used to cultivate by adorning drivers' cars with a fluffy pink moustache to position its brand as the more socially responsible of the two ride-hailing rivals. Besides Uber, others expected to go public in 2019 include Pinterest, Slack and Zoom.

Lyft, a company that has lost $2.2 billion since 2016 and has never turned a profit, is already in heady company as far as investors are concerned.

Despite Lyft's recent inroads, there is still no guarantee the company will become profitable - a risk flagged in its own regulatory filings leading up to the IPO.

Both Lyft and Uber have been criticized for causing congestion in cities and creating hazards to bicyclists and pedestrians.

As reported by The Verge, hundreds of drivers in both of these locations have gone on strike to protest the IPO, and what they feel is unfair compensation for the effort they put into their jobs.

Even so, Lyft's revenue per ride has been increasing, so some analysts see the company as headed in the right direction.

Lyft has focused on its mission of getting people to give up their personal cars in favour of ride-hailing, shared bikes and scooters, and has remained in North America.

In the last eight years, Lyft has built up investor confidence with strong consumer satisfaction and driver ratings. The company also faces a slew of arbitration claims and lawsuits from drivers who claim they are misclassified as independent contractors and owed back wages and reimbursement for expenses.

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