How Lyft’s Ride-Sharing Business Works (And Doesn’t)
Thanks to its IPO, Lyft—which lost $978 million in 2018—is now worth a very large sum of money. Here’s why.
by Alexis C. Madrigal
Mar 29, 2019
3 minutes
Lyft became a public company today, valued at around $24 billion, which is a lot for a company that’s never made money, might never make money, and in fact lost nearly a billion dollars last year. As the company itself noted in its SEC filing, “We have incurred net losses each year since our inception and we may not be able to achieve or maintain profitability in the future.”
So why are investors big and small pouring money into Lyft? Here’s how the business looks on paper.
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