Uber Eats has already become the fastest growing delivery service in U.S. and they are planning to double their service as per the reports given by Business Insider. Zimmer said they made a decision to forgo the traditional opening ceremony on the floor of the exchange to be with the company's drivers.
But on Friday, it was Lyft who beat Uber tobecome the first ride-hailing company to go public.
LOS ANGELES/NEW YORK - Lyft Inc's shares opened up more than 20 percent in their market debut on Friday, giving the ride hailing startup a market value of more than $27 billion, amid strong investor demand that bodes well for larger rival Uber Technologies Inc.
On Thursday, Lyft priced 32.5 million shares, slightly more that it was offering originally, at $72, the top of its already elevated $70-$72 per share target range, raising $2.34 billion in its initial public offering. On Friday it started trading at $87.24 on Nasdaq under the ticker LYFT. It posted a loss of $911 million in 2018 versus $688 million in 2017.
"We want to make a point that you can both invest in communities and build a great business", John Zimmer, co-founder of Lyft, added.
Aggarwal also said the company's co-founders, CEO Green and President John Zimmer, worked in recent weeks to make investors comfortable with Lyft's dual-class share structure, which has faced criticism from some investors and corporate governance advocates.
Uber was first out of the gate when it launched a black auto taxi service in 2009. Lyft marked its cars in the early days with furry pink mustaches and passengers were encouraged to sit in the front and even fist bump their drivers.
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American Sean Tinschert and his partner had rushed to the Reykjavik airport after learning the airline had gone under. With its fleet of purple-painted Airbus jets, Wow expanded rapidly, drawing customers from Europe and North America.
While Uber did damage control, Lyft raised more money, expanded to dozens more cities and gained market share against its rival.
Based in San Francisco, Lyft had 1.9 million drivers and 30.7 million riders in 2018, operating in 300 markets in the US and Canada.
"We are still in the very early innings in terms of this transition to the transportation-as-a-service market", Briefing said. "I think people see the missionary aspect, or see that we care about taking care of people, and assume it means we'll be soft when it comes to competing". Developing autonomous vehicles is key to reducing driver costs, and Lyft is behind competitors such as Google spin-off Waymo, which has begun testing a ride-hailing service using its robotic minivans in the Phoenix area.
Yes, Lyft and its larger rival Uber Technologies did more than $58bn worth of rides a year ago, and that's impressive for a mode of transit that didn't exist when the last USA president entered office. Uber said last month that it lost $1.8 billion in 2018. Facebook also had an bad first 18 months as a public company before a business model shift took hold.
While $72 a share gave the ride hailing company a $20 billion valuation, market cap at open was a nicely boosted $26.6 billion total.
Lyft was able to appeal to stock buyers excited to own a piece of a fast-growing company grabbing at the giant pool of consumer spending on transport.
"With Uber and Lyft becoming public companies, shareholders will expect them to rationalize prices on rides toward sustainable levels", said Paul Hudson, founding partner at Glade Brook Capital Partners.