Yesterday, ride-hailing giant Lyft announced it filed for an IPO with the SEC.
Lyft, which was last valued at about $15B in a private fundraising round, did not specify the number of shares it will sell or the price range, but sources estimate the company’s valuation to be in the $20-$30B range.
The IPO will serve as a huge test to see how companies that rely heavily on the gig economy fair on the public market.
Lyft speeds past Uber in the IPO chase
If approved, Lyft will beat Uber to the punch. This may seem like good timing, but with Uber’s future IPO expected to value the rideshare giant at around $120B, it’s actually a part of Lyft’s scrappier strategy.
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Nonetheless, if Uber’s future IPO is estimated to be almost 5x bigger than Lyft’s, does it really matter who gets there first?
With Uber receiving massive valuation proposals for the past few months, giving Lyft the first crack at public market investors who cry sacrilege anytime it comes to investing in competing companies will be huge for the No. 2.
If Uber stays on track to hit the stock exchange by the middle of next year, that gives Lyft a few months to shine as the one and only option while it speeds to catch up.