Thread: Financial News
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Old March 20, 2019, 09:22 AM
iDumb iDumb is offline
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Originally Posted by SportingBD
@Idumb. If you had to pick one between Lyft & Uber who would it be and why?

What do you reckon about the suggested IPO price of Uber ($40)? Fairly valued? How much more (future).

Anyone feel free to add your opinion/thoughts to this.
$40 doesn't mean anything. What's the market cap? Last I read they were valuing it at 120 billion dollars. The problem with now days is that good destructive companies are debuting so much late and as a mature company essentially shutting us. Back in the day of early 2000s, you could be choosing any tech company that you think will survive the test of time you would be certain to come out ahead. Now there are so much private money - we are not getting that chance. In the past Uber would have debuted at <10 billions and I would be so excited - i been wanting it to go public so long but now it debuts years later at value of 120 B - where is the upside?? you can't even get 10X return over long term without it become a trillion dollars company. which is ridiculous. It feels like public are being treated as a bagholder for the pvt ones as they need to cash out now.

Anyways now that i got my frustrations out. You should think about buying both. The right entry point, i don't know yet. In ipo day u wouldnt have much chance to fill ur order in the right price anyway.

the reason i am leaning toward lyft was this:
- they are mostly in NA, taking over market share year over year where as uber is flat, growth is overseas.
- So the chance to worldwide expansion is there for lyft taxi
- then there is expansion to other sector immitating uber like ubereats
- it's priced at ~20 billion giving you higher chances of gain as it would be less mature than uber
- Image of lyft is that of a good one over uber which is marred with bad publicity

Now negative of lyft:
- It's not synonymous with ride hailing or the dominant force. Whenever ppl think of calling taxi, they think of UBER. This is the BIGGEST advantage of uber. Eventually when these companies stop subsidizing rides, the name that sticks and the name that ppl use - will dominate. In my phone I don't even have lyft, only uber. Ppl who are looking for few dollars off here and there or who care about publicity news veer toward other apps. My goal is that I need to go from A to B and as conveniently as possible. I heard of UBER so I download uber. I don't have time for other apps. That's it.

- Expansion is a money losing venture initially. Uber burned through a lot of private money to get to where it is... Market will want faster results and cont increasing loss due to expansion may get punished.

- May lose the autonous race against UBER. The ultimate goal of these companies in future is likely to replace drivers with autonomous vehicles for them to be massively profitable. UBER has autonomous technology and working on it. Can scale. Lyft will be partnering up with other car maker to get this going.

I am sure there are many other pros and cons but i would have to read up on them. They are both great companies to be in at the right price. Uber is a must at the right price. 120 billions dollar valuation while still losing money is scary.
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