Get Ready For The Ridesharing IPOs
Yes, ridesharing is irreversibly changing how we get from point A to point B. Today we’re all cabbing less and Ubering more, and within the next 20 years we may never buy a new car again. With all this action in the space it may be surprising to learn that the top two competitors, Uber and Lyft, are still in the VC-funded startup phase. However, that’s about change as both companies begin the prep work for a pair of 2019 IPOs.
Let’s start with Uber. More than one investment bank has valued their IPO in the $120B range, which would make the company more valuable than GM, Ford and Chrysler combined. (stop . . . reread that last sentence) To date Uber has taken in $22B of investment capital to build their platform, so any IPO valued into the twelve figures will be a hefty payout to the VCers.
Lyft’s IPO plans are a little more down to Earth. The company has chosen Chase as the lead underwriting bank and is preparing for an IPO in the first half of 2019, tentatively priced around the $15B range. I’m guessing Uber will wait to see how successful Lyft’s stock is out of the gate before finalizing their own go public plans.
Looks like ridesharing is going to be a big business opportunity in 2019!