The are many tech startups which people every day heard about, but they don’t know that most of them are not making any profit. One of those companies is Lyft which will go public soon and to do that it has even filed for IPO to the Securities Exchange Commission. But after looking prospect of company’s IPO which shows that it’s in bad financial position. Currently, both ride-hailing companies Uber and Lyft are trying to go public, but after looking at this data, any investor would be skeptical about the future of this industry. Many people who are not regular investors wait for companies IPO which will bring them an excellent opportunity to invest for the long term. Since many tech startups like Tesla, Netflix, Facebook gave a massive amount of returns to the ordinary public after it went public. Now Lyft is also trying to do the same, but its financial position shows a different picture also that’s why some experts are skeptical about it.
Some experts who are in the transportation industry are already criticizing Lyft’s decision of IPO. Many startups which are not that much profitable still are running because of an enormous round of funding given by investors. Lyft is expecting a valuation of more than $20 billion in its IPO which is a hard target since it’s not making even a single amount of profit. Ride-hailing companies are trying to convince people not to use cars and use their services since they’re cost-effective. Even though these startups might have changed the concept of commute, it’s still difficult for them to become a profitable entity since people won’t stop buying cars. One major thing which Lyft is here facing is fierce competition from Uber which is dominating this industry from last many years.
Even though critics are predicting some negative future of the ride-hailing company, officials of it still might be optimistic about it.