Mar 3, 2019

Lyft beats Uber to IPO as ride-hailing rivalry heats up

Illustration: Rebecca Zisser/Axios

The Uber vs. Lyft war has never been hotter, and now Lyft has beaten Uber to the S-1 punch, filing its IPO papers on Friday. Expect Uber to follow suit soon.

The big picture: Lyft is much smaller than Uber — it only operates in the U.S. and Canada — but its role in the ride-share ecosystem is hugely important. Lyft has managed to grow its market share to 39%, which makes it ubiquitous enough that riders can easily and regularly compare price quotes between Uber and Lyft to see which one is cheaper.

  • So long as Uber and Lyft continue to fight for market share, consumers will benefit, and each company will prevent the other from being able to collect monopoly rents. Since the two companies provide largely identical services, they will both find it functionally impossible to build significant brand loyalty.
  • Lyft lost more than $900 million in 2018, and it is still very much following the minotaur playbook of buying growth at almost any cost. It enters a public market where large high-growth unprofitable companies are rare, and where even Tesla is now trying to show profits every quarter. Many small investors who were unable to invest in such companies while they were private will be eyeing the Lyft IPO as an opportunity to finally get in on the minotaur game.

The number that matters: 20, which is the number of votes that every B share has. Only the two founders get B shares, and that in turn means those two men will have effective control of the company, even when they own much less than half of the total outstanding stock. The dual-class stock means that Lyft will never enter the S&P 500 and never have stable long-term shareholders in the form of S&P 500 index funds.

Editor's note: This post has been corrected to reflect that Lyft operates in the U.S and Canada (not just in the U.S).

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1 a.m. ET: 664,695 — Total deaths: 30,847 — Total recoveries: 140,156.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 1 a.m. ET: 124,464 — Total deaths: 2,191 — Total recoveries: 1,095.
  3. Federal government latest: President Trump announces new travel advisories for New York, New Jersey and Connecticut, but rules out quarantine enforcement. Per the CDC, residents of those states must now "refrain from non-essential domestic travel for 14 days," with the exception of critical infrastructure industry workers.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters who backed Trump's handling of the virus less than two weeks ago are balking at his call for the U.S. to be "opened up" by Easter.
  5. World updates: In Spain, over 1,400 people were confirmed dead between Thursday to Saturday.
  6. 🚀 Space updates: OneWeb filed for bankruptcy amid the novel coronavirus pandemic.
  7. Hollywood: Tom Hanks and Rita Wilson have returned to U.S. after being treated for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Coronavirus updates: Global death toll tops 30,000

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

The novel coronavirus has now killed more than 30,000 people around the world — with Italy reporting over 10,000 deaths, per Johns Hopkins data.

The big picture: The number of deaths from COVID-19 in the U.S. surpassed 2,000 on Saturday. The United States leads the world in confirmed coronavirus infections — more than 124,000 by late Saturday. The number of those recovered from the virus in the U.S. passed the 1,000-mark on Saturday evening.

Go deeperArrowUpdated 3 hours ago - Health

Trump rules out quarantine in New York, New Jersey, Connecticut after pushback

President Trump on the White House grounds on Saturdya. Photo: Sarah Silbiger/Getty Images

President Trump tweeted Saturday night that he's decided not to introduce quarantine enforcement measures fo New York, New Jersey and parts of Connecticut, but a "strong" travel advisory will be issued for those states. The CDC later announced domestic travel restrictions for the states.

Why it matters: Trump said hours earlier he was considering quarantine measures to combat the rise in novel coronavirus cases. But he received pushback, notably from New York Gov. Andrew Cuomo (D), who told CNN such a measure would cause "chaos." "This would be a federal declaration of war on states," Cuomo added.

Go deeperArrowUpdated 5 hours ago - Health