American ride-hailing company Lyft has filed for Initial Public Offering, after months of speculation. The official filing form lists $100 million for the offering, putting the company value around $25–30 billion. Lyft is the first ride-hailing company to go public and it is closely watched to show investor sentiment towards shared mobility market ahead of bigger, Uber IPO.
The filed document is particularly interesting as it sheds light on the company profile. Lyft posted $343.3 million in 2016, with $1 billion in expenses, in 2017 company revenue grew to $1.06 billion as did company costs — $1.77 billion (significantly improved operating and net margins). In 2018 Lyft doubled its revenue to $2.16 billion, while its expenses hit $3.13 billion.
Lyft claims to have 39% of the US ride-hailing market. Along with other ride-hailing companies, Lyft mentions BMW as its competitor (the only OEM mentioned). Interestingly, $0.14 from every ride also goes to Amazon, for its AWS cloud service.
Uber in talks to buy Careem
Uber is in advanced talked to acquire Dubai-based ride-hailing company Careem, according to Bloomberg. The media outlet says Uber wants to buy Careem before its IPO in coming weeks. According to the sources, Careem valuation is around $3 billion.
Ahead of the IPO, Uber is emphasizing its growth and diversification beyond ride-hailing, investing in food delivery, logistics, electric bikes, and self-driving cars.
The talks with Careem started last year with discussions on combining operations to resolve a costly competition. Careem’s valuation during the last round of investments was $1 billion. The company has more than a million drivers in 100 cities across the Middle East.
German car industry to invest $45 billion in EVs.
Germany’s automotive industry will invest over 40 billion Euros in electric vehicles over the next three years to triple the number of electric fleet, said the head of the car industry association VDA.
The plan is important to reach the goals set by the EU to reduce carbon dioxide emissions and to expand the charging infrastructure. The automakers are under pressure to match the electric models with their fossil fuel counterparts, as consumers remain skeptical due to higher prices, limited driving ranges and patchy charging infrastructure.
Additionally, the German automakers will spend 18 billion Euros on connected and self-driving vehicles. Along with the increased investment, companies are forming partnerships to prevent costs associated with competition. Daimler and BMW announced cooperation on self-driving cars, and VW and Ford will cooperate on vans and autonomous vehicles.