Lyft Inc. and Uber Technologies Inc. are solidifying strategies for IPO (initial public offerings) in 2019, when a huge bunch of investors will make a decision on what the ride-hailing money-losing businesses are actually worth.
Top banks at Wall Street, competing for a coveted underwriting position on Uber’s IPO, recommend that the San Francisco firm can make one of the most precious offerings in the history. In their pitches to Uber, Goldman Sachs Group Inc. and Morgan Stanley claimed that the business can be capitalized at almost $120 Billion in an IPO, sources well known with the issue claimed to the media in an interview.
In the meantime, Lyft has chosen Credit Suisse Group AG, JPMorgan Chase & Co., and Jefferies Financial Group Inc., to lead the IPO in the H1 of 2019, as per the sources well aware with the subject. The banks planned a valuation range of $18–30 Billion, with an objective of $25 Billion, one of the sources claimed.
On a similar note, the joint venture by online grocery delivery of Walmart Inc with Uber and Lyft (the ride-hailing services) was concluded earlier this year. This was a potential hold up for the retailer’s dreams to challenge rival Amazon.com Inc with fast delivery of groceries to users’ homes. The end of the Walmart joint ventures, which has not been earlier reported and was verified by Uber and Walmart, undercuts a dream that the ride-hailing firms placed out. The vision was a service that can competently deliver any on-demand product, including cargo and people, at the click of a smartphone application.
“It is extremely hard to deliver packages and people together,” claimed a source with a delivery firm that operates with Walmart and has direct information of the deal. “They are two totally separate business models.”