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Home / Business / Lifting shares close 9% higher in market bids

Lifting shares close 9% higher in market bids



  Lift co-founder and CEO Logan Green (C) and co-founder and president John Zimmer Image database
Reuters

Caption

Lift co-founder and CEO Logan Green (1
9659004) C) and co-founder and president John Zimmer (L) is several millionaires after the flotation

The shares in Lyft closed almost 9% higher on the company's first day as a listed company on the Nasdaq stock exchange.

The company's stock rose from a starting price of $ 72 each to the end of $ 78.29 and appreciated it

The original public offering (IPO) has made several millionaires of the seven-year-old company's founders, Logan Green and John Zimmer.

Their total stake in Lyft is worth more than $ 1 billion.

Lifting is still making a profit and reported an increase of $ 911 million in losses last year, compared to $ 688 million in 2017, despite revenue rising to $ 2.1 billion.

Company shares increased by 21% to nearly $ 87 in early trading.

IPO is seen as a litmus test for a number of technology flotations expected this year, including Lyft's major competitor Uber, which could be valued at as much as $ 120 billion when it shows its stock.

Lyft's business is built on the premise that having a car is expensive and as ore people move into urban areas, they change from owning a vehicle to using services to get around.

Only in the US, households spend more than $ 1.2 a year on personal transportation.

Image copyright

Reuters

Image caption

Uber is expected to follow Lyft with his own original public offer

Lyft says it has a 39% share of the US roll-sharing market, up from 22% in 2016, but still under Uber, which is still the industry's largest player.

Uber also operates globally, although in recent years, stakes have sold in their Chinese and Southeast Asian businesses.

Zimmer, president of Lyft, said the company was willing to focus on the US and Canadian markets.

He told CNBC: "We do not have to pull away from markets, we are moving at the right pace, we are deeply transported, deep in the markets we are in. It has given us the opportunity to get the market share we have achieved, and [global growth] is a good call option down the road. "Lifting increases $ 2.3 billion that it plans to spend on operating costs, as well as investing in acquisitions and technology.

At the flotation price, Mr. Green's efforts were worth about $ 600 million, while Mr Zimmer was valued at $ 415.8 million.


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