Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Illustration: Lazaro Gamio/Axios
Lyft allowed a group of select drivers to purchase shares in its recent IPO, but it might not have been the jackpot some had hoped for.
The bottom line: Drivers didn't face a lock-up period, but Lyft shares have mostly traded below their IPO price.
- Lyft priced its IPO at $72 per share and opened at $87.24 per share. But it soon broke below the IPO price, briefly rebounded, and has since sunk consistently since. It opened trading today at $56.50.
Some opted to buy shares, like Jay Cradeur, a Lyft driver who qualified for the $1,000 cash bonus and purchased 13 shares. He ultimately sold his stake for a small profit at $75 a piece. But it got dodgy when the stock tumbled to $67 in its second day of trading, with Cradeur even setting up a stop-loss at $60. Another driver who commented on Cradeur’s post on the Rideshare Guy’s blog said he sold his at $83.55 a share for a $145 profit.
Others decided not to. Carlo Garibay, another longtime Lyft driver who told the San Francisco Chronicle last month that he would purchase IPO shares, tells Axios that he instead used his cash bonus to pay off bills; adding that he knows other drivers who invested and “got burnt.”
- Lyft gave out cash bonuses to some longtime drivers who were just shy of the 10,000 ride requirement, but did not let them use it to buy into the IPO. This might have been a blessing in disguise.
What’s next: Uber will have a similar program to let drivers purchase IPO shares when it lists next month.