Lyft shares raced out of the starting gates in its Wall Street debut. The company made a secure entrance into Wall Street this Friday by raising $2.3 billion in an IPO. This debut has marked as a turning point in the ride-hailing businesses and the so-called shared economy.
Lyft is a San Francisco based company which started trading at Nasdaq with the ticket name “LYFT.” The price opened at $87.24 which is 21 percent greater than its initial offering price. The shares closed at $78.29 on the official trading day.
Lyft was first from the line with its stock offering. It has been expected that its biggest rival Uber will offer an IPO very soon. Another two highly anticipated tech IPOs are from Pinterest and Slack.
Uber and Lyft are the two most prominent companies in the sharing economy. Airbnb is another firm which offers home sharing platform. Both of these companies have helped in improving the smartphone economy.
Gene Munster and Will Thompson from investment firm Loup Ventures made this statement last week in their note- “Ridesharing has transformed so many people’s lives. The transformation has made simpler and cheaper, and people nowadays can go to any place without any hurdles.
These firms have become the stepping up moves to autonomous rides and are expanding rapidly as Lyft gained a considerable market share in the US whereas Uber has got a huge market share in dozens of international countries.
Second Measure firm has measured the economy of both Lyft and Uber. According to their report, Uber accounts for 67.3 percent of the US rideshare in February whereas Lyft was accounting for 30.3 percent of the market share.
The rivals are trying to bring in more forms of transportation for their consumers.