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$343 mln$1060 mln$2160 mln

Lyft

The fastest growing ride-sharing service in the US
IPO
Medium risk

The company's revenue from 2016 to 2018

Invest in Lyft

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Investment Idea Details
About the company

Fastest-growing multimodal transportation networks in the United States and Canada.

The company generates revenue from service fees and commissions paid by the drivers for use of the Lyft Platform and related activities to connect the drivers with passengers to facilitate and successfully complete rides via its mobile application.

In addition, the company generates revenue from single-use ride fees paid by riders of shared bikes and scooters.

Growth opportunities

Market opportunity today includes transportation spend in the United States and Canada. In the United States alone, consumer expenditures on transportation were approximately $1.2 trillion in 2017. Lyft’s share of the U.S. ridesharing market has increased to 39% in December 2018 from 22% in December 2016.

Lyft long-term goal is to deploy a low-cost, scaled autonomous vehicle network that is capable of delivering a majority of the rides on the Lyft platform.

Risks

The ridesharing market and the market for other Lyft offerings, such as the network of shared bikes and scooters, are still in relatively early stages of growth and if such markets do not continue to grow, grow more slowly than expected, company’s business, financial condition and results of operations could be adversely affected.

There is intense competition from Uber which can result in the loss of market share, which could adversely affect business, financial condition and results of operations. There are also a number of companies developing autonomous vehicle technology that may compete with Lyft in the future, including Alphabet (Waymo), Apple, Baidu, Uber and Zoox as well as many other technology companies and automobile manufacturers and suppliers.

Valuation

In 2017 and 2018 Lyft reported revenues of $1.06B and $2.06B, respectively. Lyft showed significant revenue growth over this period (209% and 103%).

Given these numbers, we project 2019 revenues of $3.2B-$3.4B with 50% growth. The average P/S ratio for Technology companies is 9x-10x. Therefore, the expected equity market value of Lyft is $28.8B-$34B in the base case.



How IPO Investments Work

1.
Collection
of funds

2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

Publication
7 Mar
Threshold amount
50 $
2.
Buy shares

We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

Submit applications before
21 Mar
3.
Start Bidding

The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

Start Bidding
mar
Annual return forecast
+ 100%
4.
Receiving
profit

After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

End
May

Early profit fixation

Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 1005 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange.

Fee

FOR ENTRY

3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

FOR EXIT

1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

SUCCESS

20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

TO EARLY EXIT

Usually, 10 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

Advantages Enjoyed by Those Investing with United Traders

Reliability

Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.

In the profit from the first day

Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

Low entry threshold

Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

Invest in Lyft

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