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Assuming Uber goes public in the near future (and I believe it will), I wouldn't be surprised to see them buy Lyft. Who knows. Lyft could IPO before that happen

Assuming Uber goes public in the near future (and I believe it will), I wouldn't be surprised to see them buy Lyft. Who knows. Lyft could IPO before that happens, but I would bet on it happening. See also: Seamless & GrubHub, Zillow & Trulia

zak_mc_kracken 12y ago
Whatever happens, it's very likely that only one of them will go public. And given how indistinguishable both have become and how non-sticky their service is, it wouldn't surprise me if the very existence of two competitors that are so similar makes it impossible for either one of them to reach the kind of profitability that's a requirement for IPO's. Kudos for disrupting the taxi industry, which was in dire need of a kick in the butt, but I think both companies are about to discover that profitability is a lot harder to achieve when you have competitors who can run a business that's 100% a clone of yours. The simple fact that most drivers are working for both Uber and Lyft should be a red flag for any savvy investor.
- encoderer 12y ago
  > Whatever happens, it's very likely that only one of them will go public. Your analysis of the IPO situation could use another look. I personally think it's very likely both companies will go public -- or Uber will snap up Lyft before it has the chance. While it's pretty reasonable to think there would be a "profitability requirement", a look at tech IPOs dispells that myth. Look at the recent ones, the ones from a few years ago, the 20 year old ones from the 90s, doesn't matter which period you look, you'll find scores of unprofitable companies. Recently Go Pro and Twitter went public. Neither, I don't think, are profitable. Of the 4 companies I mentioned in my comment, I don't think any are profitable consistently though perhaps Zillow has been recently. Amazon went public 20 years ago and is still not profitable. Neither of these companies need to turn a consistent profit in order to IPO. I imagine they both already have sales high enough to pass the chickenshit threshold. That's all that counts.
  - zak_mc_kracken 12y ago
    Fair points, we'll see how things unfold. I still stand by my claim that at most one of them will go public. After that, either that one will buy the other one or one of them will fade (probably the one that didn't go public).
viscanti 12y ago
Lyft was allegedly rebuffed by investors over the summer (they apparently tried to raise another round once Uber raised their 1B round). It sounds like Lyft's investors are really pushing Uber for an acquisition (http://www.businessinsider.com/uber-lyft-wants-us-to-acquire-them-2014-8 http://www.businessinsider.com/uber-lyft-wants-us-to-acquire...). I'd be surprised to see them ever make it to an IPO. Their recent spree of attack articles against Uber seem to line up with the alleged threats to "go nuclear" if they aren't acquired. It seems like a desperate company on the way out.
- encoderer 12y ago
  Hold up. Lyft raised 1/4 billion dollars 5 months ago. I really question your sources here, but IF there was any issue with Lyft raising more money it's certainly a question of valuation. Not whether they can raise but whether they can raise on their own terms. And of course lyft's investors want an Uber buyout. Anyway, I certainly cannot predict the future, but on the trajectory Lyft is on as it looks to me living in SF, an IPO is on the horizon. Interesting to see the on-the-ropes impression by several of you. Where do you live?

zak_mc_kracken 12y ago

Whatever happens, it's very likely that only one of them will go public. And given how indistinguishable both have become and how non-sticky their service is, it wouldn't surprise me if the very existence of two competitors that are so similar makes it impossible for either one of them to reach the kind of profitability that's a requirement for IPO's. Kudos for disrupting the taxi industry, which was in dire need of a kick in the butt, but I think both companies are about to discover that profitability is a lot harder to achieve when you have competitors who can run a business that's 100% a clone of yours. The simple fact that most drivers are working for both Uber and Lyft should be a red flag for any savvy investor.

encoderer 12y ago
> Whatever happens, it's very likely that only one of them will go public. Your analysis of the IPO situation could use another look. I personally think it's very likely both companies will go public -- or Uber will snap up Lyft before it has the chance. While it's pretty reasonable to think there would be a "profitability requirement", a look at tech IPOs dispells that myth. Look at the recent ones, the ones from a few years ago, the 20 year old ones from the 90s, doesn't matter which period you look, you'll find scores of unprofitable companies. Recently Go Pro and Twitter went public. Neither, I don't think, are profitable. Of the 4 companies I mentioned in my comment, I don't think any are profitable consistently though perhaps Zillow has been recently. Amazon went public 20 years ago and is still not profitable. Neither of these companies need to turn a consistent profit in order to IPO. I imagine they both already have sales high enough to pass the chickenshit threshold. That's all that counts.
- zak_mc_kracken 12y ago
  Fair points, we'll see how things unfold. I still stand by my claim that at most one of them will go public. After that, either that one will buy the other one or one of them will fade (probably the one that didn't go public).

viscanti 12y ago

Lyft was allegedly rebuffed by investors over the summer (they apparently tried to raise another round once Uber raised their 1B round). It sounds like Lyft's investors are really pushing Uber for an acquisition (http://www.businessinsider.com/uber-lyft-wants-us-to-acquire-them-2014-8 http://www.businessinsider.com/uber-lyft-wants-us-to-acquire...). I'd be surprised to see them ever make it to an IPO. Their recent spree of attack articles against Uber seem to line up with the alleged threats to "go nuclear" if they aren't acquired. It seems like a desperate company on the way out.

encoderer 12y ago
Hold up. Lyft raised 1/4 billion dollars 5 months ago. I really question your sources here, but IF there was any issue with Lyft raising more money it's certainly a question of valuation. Not whether they can raise but whether they can raise on their own terms. And of course lyft's investors want an Uber buyout. Anyway, I certainly cannot predict the future, but on the trajectory Lyft is on as it looks to me living in SF, an IPO is on the horizon. Interesting to see the on-the-ropes impression by several of you. Where do you live?