Weekly Update #232: Time for Lyft Off?
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% to around one-third. The company had a ~20% market share previously.
- Investors expect 2017 revenue of around $1.5B, more than double last year’s $700M. Net loss expected to remain relatively consistent at $600M. Lyft believes it could reach breakeven by the end of next year.
- Revenue projections have increased dramatically. Bloomberg reports that the company expects to quadruple its revenue over the next three years (see chart). Previously, Lyft projected 2020 revenue of ~$1B.
- 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.