Airports feared losing revenue to Uber and Lyft. Here's what happened

SAN FRANCISCO CA- JANUARY 31 A Lyft driver places the Amp on his dashboard

Airports feared losing revenue to Uber and Lyft. Here's what happened

Lyft filed its IPO prospectus on Friday, lifting the hood on its key business metrics for the first time as the San Francisco-based transportation giant prepares to go public.

Lyft is now valued at $15bn, just seven years after it was founded by technology entrepreneurs John Zimmer and Logan Green. In its filing, Lyft said it served 30.7 million riders in the U.S. and Canada in 2018 and that it had 1.9 million drivers past year.

It also allows average investors to purchase shares in the company, beyond just venture capitalists and other private investors. However, it also lost $911.3 million in 2018, up from a net loss of $682.8 million in 2016 and $688.3 million in 2017.

The company showed impressive growth, with $2.2 billion U.S. in revenue a year ago - more than double its $1.1 billion in revenue in 2017.

For one, Lyft is going to provide drivers with at least 10,000 trips a cool $1,000, and this amount would scale up depending on how many total trips and years the person has been driving for them.

Additionally, the firm said it will issue stock with a dual-class share structure.

Lyft co-founders Logan Green and John Zimmer each own about 1.2 million shares.

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These include Pinterest and Slack, which are expected go public this year.

Reuters reported Lyft will launch its road show around 18 March, where the company will meet with prospective investors to drum up demand for its shares. At a $25 billion valuation, Lyft would be trading at almost 12 times its annual revenue.

A high valuation for Lyft would bode well for Uber's prospects.

Uber and Lyft have always matched each other with similar features and discounts, like shared carpool rides, driver incentives, and to some extent app design. Lyft said that as of December it held 39 percent of the US ride-hailing market, up from 22 percent at the end of 2016. The company will kick off its roadshow later this month.

Lyft's USA market share is approaching 40 percent, up from 35 percent in early 2018, people with knowledge of the matter have told Reuters.

Uber and Lyft filed confidentially for an IPO in December, but did not disclose financial details at the time. The company had just over $8 billion in bookings a year ago, 76 per cent more than in 2017 and more than four times the number from 2016.

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