Report: Lyft IPO Could Be Near

Lyft, a ride-hailing platform that is smaller in size compared to its biggest rival Uber, is taking the first steps toward filing for an initial public offering, Reuters reported.

Lyft is said to be seeking out the services of an IPO advisory firm to help Lyft's management pick bankers and underwriter. A decision on which firm management will select could be finalized shortly.

A filing on a public exchange could come as early as next year; during its most recent round of financing, Lyft was valued at $7.5 billion. At that time the company raised $600 million from private equity investors, including KKR & Co.

By comparison, Uber is valued just shy of $70 billion in its most recent funding round, which makes it the most valuable private company that is backed by venture capitalists, according to Reuters. Yet Uber's business has suffered various setbacks and scandals which resulted in the ouster of the company's co-founder and CEO Travis Kalanick.</sp

On the other hand, Lyft has been active in improving its business and announced a notable deal with Alphabet Inc GOOG GOOGL's Waymo unit for self-driving car developments.

Lyft may face some problems in its ultimate quest to become a public company. Many of the major Wall Street firms that would play a role in taking the company public also happen to be lenders or investors in Uber. Also, a bank that decides to accept Lyft's business may find themselves left out of any Uber IPO, which will be larger in size. 

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Photo courtesy of Lyft.