Who Will Get Rich With The Lyft Ipo

Lyft’s IPO is expected to be one of the biggest of the year among San Francisco tech startups. Uber, Airbnb, and Slack are all also planning IPO’s in 2019. Lyft’s shareholders will collectively hold stakes worth billions when the company makes its IPO. Lyft’s IPO filing has laid bare the company’s financials and its planned bonus structure. It has also pitted it against its competitor Uber, which plans to go public in the first half of 2019. Lyft reported a net loss of nearly $1 billion last year. That means it lost about $1.47 for every ride it gave in 2018. Lyft is reporting that their U.S. market share is nearing 40%, which is up from 35% in early 2018. The company has been aggressively expanding into mid-sized and smaller cities and currently serves more than 600 American and Canadian cities – which is three times more than two years ago. Lyft’s IPO filing reveals that it lost $911 million on revenue of $2.2 billion last year. In 2017, Lyft lost $688.3 million on revenue of $1.1 billion. Overall growth slowed in 2018 when compared to 2017. Lyft’s IPO plans include a pretty cool perk for its most loyal drivers: an option to buy stock during the IPO. Drivers who’ve given at least 10,000 rides will get a $1,000 bonus with the option to use it to buy shares of Lyft at its IPO price. Drivers with at least 20,000 rides will get a $10,000 bonus and the same option. While that option for loyal drivers is nice, it doesn’t cover up the fact that Lyft is deeply, deeply in the red, and it has almost no prospect of becoming profitable any time soon, if ever. Following are the major shareholders, the total number of shares owned, and what their post IPO holdings will be worth assuming $65 per share. Alphabet Shares Owned: 12,828,964 Percent of Class A owned after IPO: 4.7% Value of stake: $833,882,660 Andreessen Horowitz Shares Owned: 15,040,924 Percent of Class A owned after IPO: 5.5% Value of stake: $977,660,060 Fidelity Shares Owned: 18,544,716 Percent of Class A owned after IPO: 6.8% Value of stake: $1,205,406,540 General Motors Shares Owned: 18,664,446 Percent of Class A owned after IPO: 6.9% Value of stake: $1,213,188,990 John Zimmer Shares Owned: 5,775,118 Percent of Class B owned after IPO: 39.83% Value of stake: $375,382,670 Logan Green Shares Owned: 8,373,773 Percent of Class B owned after IPO: 60.17% Value of stake: $544,295,245 Rakuten Shares Owned: 31,395,679 Percent of Class A owned after IPO: 11.6% Value of stake: $2,040,719,135