Wednesday 23 September 2020

Lyft stock price is at about one-third of its initial public offering price

Lyft, Inc. develops, markets, and operates a mobile app, offering vehicles for hire, motorized scooters, a bicycle-sharing system, and useful food delivery. The company is based in San Francisco, California and operates in 644 cities in the United States and 12 cities in Canada. In Canada, Lyft has most business in major cities, such as Toronto, Ottawa and Vancouver.

With an impressive 30% market share, Lyft is the second-largest ridesharing company in the United States after Uber. Uber is larger than Lyft. Such ridesharing companies are not available in all areas.

Investors have had a difficult year with Lyft (NASDAQ:LYFT) stock. Shares decreased after a California court battle over worker classification recently intensified. Lyft stock is down about 32% this year. Lyft stock price is currently at about one-third of its initial public offering price. These days, Lyft’s enterprise value is at approximately $7.2 billion. Many analysts think that this is quite a cheap price.

The evolving situation around the COVID-19 Pandemic is sure difficult. However, Lyft’s second-quarter earnings showed signs of post-pandemic recovery. Lyft company is thinking about the health and safety of the Lyft community. Lyft drivers and riders should know the best ways to help protect themselves and others when sharing the ride. According to the CDC and local health officials, people who have been diagnosed with COVID-19, suspect they may have it, or are being evaluated for it should not use rideshare, public transportation, or taxis.

Lyft creates frequent updates about this ongoing situation. Lyft thinks about the official guidance from federal and local health authorities. Of course, safety includes wearing a face covering and keeping the front seat clear. Lyft is still available across North America (in accordance with official mandates).

For Lyft drivers, a Lyft Store has been created to give access to affordable cleaning supplies and face masks. New earning opportunities are being explored and ways to save money through existing programs.

Uber is larger than Lyft. Uber offers ridesharing services outside of USA and Canada. Lyft focuses on rideshare in North America. Uber wants to expand to more markets.

Autonomous vehicles could sure create more competition in the future. GM (NYSE:GM), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), and others plan on entering this business. Lyft could try to significantly reduce the number of drivers it usually uses. However, this does not guarantee a certain profit. There are also city regulations to deeply think about.

Lyft and Uber really are the most popular ridesharing companies. Average trip costs for both Uber and Lyft are roughly similar. Lyft stock price has had a lot of turmoil after its IPO. Lyft (NASDAQ:LYFT) continues to struggle to go up in price. It was priced at $72 for its April 2019 IPO. Following this, the shares temporarily went up above $75 before falling lower to $50. The stock went back to $68 at some point. Now, it is at about $27.

Lyft as a company is certainly focused on consumer transportation. It is focused on North America. It is focused on serving drivers and passengers. Lyft is in less countries than Uber.

Uber is in over 60 countries. Although, Uber didn't actually make it in to all of the USA states. Also, at some point, Uber tried China and backed out of China.

Probably Uber will not actually acquire Lyft. That is an unlikely possibility.

Lyft and Uber companies have had some various safety issues. Newspaper articles exist about assaults on passengers (Be Careful). Customers are warned to exercise caution when using ridesharing companies these days.

Autonomous cars could become popular in the future. Companies like Uber and Lyft could profit a lot from this. If you believe in that as an investor, you might get Lyft as an investment.

The Lyft Headquarters are in San Francisco, California, United States. It was founded in June 2012. The CEO is Logan Green (From Jun. 2012). The revenue was 2.157 billion USD (2018). The founders of Lyft are Logan Green and John Zimmer. The company website is

The biggest owners of Lyft are:

Rakuten (11%)

General Motors (6.6%)

Fidelity Investments (6.5%)

Andreessen Horowitz (5.3)

CapitalG (4.4%)

1 comment:

  1. In Canada, Lyft has most business in large major cities, such as Toronto, Ottawa and Vancouver. Lyft sure wants to expand to more Canadian cities in the future. Lyft wants to increase its Lyft market share. Here is the challenge that Lyft has to succeed with.