## Lyft’s Value Plummets Since Going Public: What’s Next for the Ride-Hailing Giant?
**CNBC’s Deirdre Bosa** investigates the alarming decline in Lyft’s value since its initial public offering (IPO) in 2019. This in-depth coverage dives into the challenges the ride-hailing company faces and the potential options it might explore for its future.
As Lyft’s shares trade at a devastatingly low price of $10 and change, a far cry from its IPO debut at $72, shareholders and investors are understandably displeased. The founders have already taken a step back from day-to-day operations, and Lyft has lost a staggering 85% of its value. This downward trajectory of market share prompts industry analysts to question whether a possible acquisition is on the horizon. Will Lyft sell itself?
In a recent interview, the newly appointed CEO expressed his determination to turn the business around and make a strong case for Lyft’s potential. However, he later hinted at being open to offers, creating speculation as to who the potential suitor might be. Could it be a private equity firm, an activist investor, or even Lyft’s main rival, Uber? The question remains unanswered.
One undeniable asset that Lyft possesses is data. Having the advantage of gathering consumer insights prior to Uber’s entry into the market, Lyft’s knowledge of customer preferences could be highly valuable to certain players in the industry. Perhaps a tech giant like Google, with its autonomous driving branch Waymo, could benefit from this synergy. However, regulatory hurdles may hinder such a partnership.
Private equity firms also pose an interesting possibility, considering Lyft’s ongoing financial losses and substantial cost-cutting measures. On the other hand, automakers could find the ride-hailing giant appealing, building upon Lyft’s previous partnership with Cruise, a subsidiary of General Motors.
Oddly enough, even Tesla and its pursuit of autonomous vehicles could find value in accessing Lyft’s data. However, there are doubts as to whether Lyft’s data is as advanced as Tesla’s in the autonomous vehicle race, as other competitors like Uber have scaled back their efforts in this field.
Given the current situation, one potential avenue for Lyft to explore could be going private. Such a move may offer more freedom and flexibility in navigating the challenges it faces.
As the fate of Lyft hangs in the balance, only time will tell what lies ahead for the ride-hailing giant. Don’t miss out on this thought-provoking analysis of one of the most influential players in the app-based transportation industry.
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CNBC’s Deirdre Bosa reports on how Lyft has lost its value since it went public in 2019.
Just ask yourself have u ever ordered a Lyft before ???