Weekly Update #232: Time for Lyft Off?

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Hello Investors,

To say 2017 was tough for Uber would probably be an understatement. During a tumultuous 12 months, the company seemingly bounced from one scandal to another, lost key executives (including its CEO), faced a lawsuit from investors, became subject to a DOJ investigation...just to name a few. Uber remains the largest ride-hailing service globally; however, the giant’s woes appear to have opened the door for Lyft, it’s key rival, to shore up its own competitive position. Just how much? A Bloomberg article suggests quite a bit -- we note some key highlights from the startup’s 2017 below:

  • Lyft grew US market share by 61%. The company now commands ~⅓ of the market vs. ~20% previously.
  • The company’s 2017 revenue was tracking around $1.5B, more than double last year’s $700M. Investors expect the net loss to remain relatively consistent sequentially at $600M and Lyft believes it could reach breakeven profitability by the end of next year.
  • Lyft ended the year with strong revenue projections. Bloomberg reports that the company expects to quadruple its revenue over the next three years (see chart). 
  • At year end, Lyft closed a $1.5B funding round led by CapitalG, which valued the company at $11.3B ($39.75/sh). The new share price translates to a 24% increase from the company’s prior round last April. Fidelity, which is an Uber investor, also invested in the recent round.

 

Source: Bloomberg

Thanks,
Phil Haslett
Founder + Head of Investments, EquityZen

 

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