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Lyft Stock – Share Price & News | Money Morning

Lyft Stock (LYFT)

Lyft is a ridesharing giant that serves as an alternative to local taxi services. It lets you leave the driving, traffic, and parking headaches to someone else. Lyft operates predominantly in North America and rivals Uber, another transportation-service company.

To use Lyft, you’ll need a smartphone with the Lyft app and an account. The system connects drivers and passengers and also accepts payment through the platform.

A Brief History of Lyft Stock

In 2007, Logan Green and John Zimmer launched a ridesharing company called “Zimride.” This venture focused on long-distance rides but lacked services for short-distance commutes. As a result, Green and Zimmer started Lyft in 2012.

Lyft launched in San Francisco first, but took off in 2013 when investments started flowing. It raised $15 million in January 2013 in a Series B round. A few months later, Lyft raised $60 million in Series C funding. By the end of 2013, the company entered Silicon Valley.

Lyft ran into some difficulties when trying to launch in New York City. Their service did not initially adhere to all of the city’s regulations. As a result, Lyft took steps to comply with the Taxi and Limousine Commission’s rules and regulations, allowing them to launch in New York City in 2014.

The Lyft valuation, including all investments, amounted to $2.5 billion in March 2015. That was the year of alliances to create a global hedge against its primary competitor, Uber. Lyft partnered with a Chinese ridesharing company, Didi Chuxing, as well as Ola Cabs from India, and GrabTaxi from South-East Asia.

In July 2017, Lyft began serving more than one million rides per day across 160 cities. Later that year, it went international, expanding to Canada.

The Lyft IPO was in March 2019. The initial Lyft stock price was set at $72. However, Lyft stock price began trading at $87.24 and ended at $78.29.

Lyft­­ Stock Risks and Analyst Concerns

Although Lyft stock ended its first public trading day with a market evaluation of $22.2 billion, analysts still have concerns. It is a tech giant that is not profitable yet, despite impressive revenue. Lyft reported a loss of $900 million in 2018.

Lyft has been listed on CNBC Disruptor 50 List three times. This is not surprising as the company is changing the way we view transportation services. However, this innovation also comes with legal obstacles.

For example, Assembly Bill 5 and the April 2018 California Supreme Court decision are hotly debated topics about independent contractors. Assembly Bill 5 would drastically change the cost of employment for Lyft drivers, affecting Lyft’s bottom line.

Investors are cautiously optimistic as Lyft intends to expand its services to include bikes, scooters, and even self-driving cars.

However, these avenues may take some time in order to be profitable. Wall Street is anxiously awaiting that time as investors are weathering Lyft stock price volatility.

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