Lyft Tells Investors It Will Rein in Spending in 2020
2019 would be a peak year for investment: Lyft.
(Bloomberg) -- One of the most persistent questions for Lyft Inc. as it markets an initial public offering to investors is how it expects to keep operating at a significant loss. On Thursday, Lyft told a roomful of potential shareholders to expect expenses to decline next year, according to people who were present.
Lyft executives answered questions at an event for investors in New York. They said 2019 would be a peak year for investment, said attendees, including Shawn Kim, a financial analyst for Gabelli Funds. Lyft said the IPO, which is seeking to raise as much as $2.1 billion, should provide all the capital the business will need to operate.
Ride-hailing has yet to prove itself as a sustainable business. Concerns over mounting losses should continue to dog Lyft and its larger rival, Uber Technologies Inc., which is expected to file for its own IPO next month.
Lyft lost $911 million on revenue of $2.2 billion last year. Even still, investor interest has been high. The San Francisco-based company is expected to price its shares on March 28 and start trading on the Nasdaq the following day. A spokeswoman for Lyft declined to comment.
To contact the reporter on this story: Eric Newcomer in San Francisco at enewcomer@bloomberg.net
To contact the editors responsible for this story: Mark Milian at mmilian@bloomberg.net, Michael Hytha
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