In the continued battle for supremacy between two ride-hailing companies; Uber and Lyft, Lyft seems to take the upper hand. It has announced its intention to go public come next year and has continued to source out money, in the bid for strengthening itself. Claims from people who sought anonymity revealed that Lyft has held talks with various investment banks regarding the public offering scheduled for 2018. The people went on to say that it is yet to be decided on which company will be the primary underwriter of Lyft for the I.P.O. As a way of boosting itself before receiving offers from the public, Lyft made a statement on Thursday saying that it was able to raise a total of 1$ billion in financing led by CapitalG.
When Lyft was last valued, its value was at $6.9 billion. After receiving the funding, its value rose to $10 billion. The latest investment for Lyft only serves to complicate the financial relationships in the ride-hailing industry. The companies continue to receive funding from corporations that place their money on companies that compete. The financial boost by CapitalG bides Lyft with Alphabet. As part of the pact, David Lawee who is a venture partner at CapitalG will sit as a board of directors at Lyft. The president of Lyft revealed that of the miles traveled in the United States, 0.5 percent has been covered by his company. The pact between the company and CapitalG and the intention to make the company public only serves to better the services offered to the American residents.
By opting to invest on Lyft, Alphabet is heightening the tension between the two famous ride-hailing companies. Uber has dominated the ride-hailing industry since its inception but has recently been faced with several scandals regarding its way of operation and its culture. Most recently the co-founder and chief executive officer of Uber was kicked off by several investors. Dara Khosrowshahi was consequently appointed as C.E.O. Uber intends to go public within the next 18 to 36 months. For all the hurdles that the $70 billion worth company has been faced with, the greatest beneficially has been Lyft. There seemingly is a competition between Uber and Lyft regarding who will go public first, because the first one will be the pacesetter for Wall Street to value public ride-hailing companies. On their side, investors continue to put money where they feel they will reap more.