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What The Experts Are Saying Ahead Of Lyft's IPO

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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 Amazon.com, 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. 

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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

 

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