Market Overview

What The Experts Are Saying Ahead Of Lyft's IPO

What The Experts Are Saying Ahead Of Lyft's IPO

Ride-hailing company Lyft will see its shares trade on a public market for the first time Friday. Ahead of the much-anticipated IPO, the following is a roundup of what industry experts are saying. 

Lyft Investor Sees Amazon-Like Story

Lyft's story remains in its early stages and is comparable to, Inc. (NASDAQ: AMZN)'s origins in the 1990s, David Chao, co-founder and general partner of DCM and a Lyft investor told CNBC Thursday.

Amazon's true potential reach has only been felt recently, and it could take decades for Lyft to reach its full potential, he said. 

Invest in IPO shares before the stock hits the market with ClickIPO. Check it out here

Lyft can "double or even triple" its margins over the long-term from the advancement of autonomous vehicles, Chao said. 

Chicago Treasurer Talks Dual Class Structure

Lyft's IPO will come with a dual class structure, which implies the founders will maintain considerable voting power.

While it is not necessarily uncommon for companies to have a dual-class structure, what is unique is the lack of a sunset provision, Chicago Treasurer Kurt Summers told CNBC.

A sunset provision is a form of good corporate governance and aligns interests between all parties, he said.

Chicago is home to 57,000 ride-hailing drivers and just 4,000 taxi operators, Summers said. 

Lyft is an "important part of our transportation mix," and a dual-class listing does raise questions related to the "sustainability of their future of a company and their business operations," the city treasurer said. 

Cyndx CEO: 'Home Run' Potential

Friday's "opening day" ceremony for Lyft could result in a "home run" performance, Cyndx CEO Jim McVeigh also told CNBC in an interview.

Lyft is a company that boasts large engagement with consumers and transforming industries, the CEO said. Once a company like Lyft controls the customer engagement, it can add on new services and drivers of revenue to generate profit over the long-term, he said. 

"When you think about transportation being a $1.2-trillion opportunity, at [Lyft's 2018] $2 billion of revenue — that's nothing."

Related Links:

Recode Editor: Uber, Lyft's Business 'Tough Going From A Financial Point Of View'

Cramer, DataTrek's Colas Talk Lyft Ahead Of Anticipated IPO

Photo courtesy of Lyft. 

Posted-In: CNBC David Chao IPO LyftNews IPOs Media Best of Benzinga


Related Articles (AMZN + LYFT)

View Comments and Join the Discussion!

March Hemp Report

CEO Of TPG Real Estate Finance Trust Greta Guggenheim Weighs In On The Outlook For The Housing Market In 2019