Situational awareness: President Trump has clarified his statements on Kim Jong-un and Otto Warmbier after the late student's family put out a statement today. Trump tweeted:
- "Of course I hold North Korea responsible.... for Otto’s mistreatment and death. Most important, Otto Warmbier will not have died in vain. Otto and his family have become a tremendous symbol of strong passion and strength, which will last for many years into the future. I love Otto and think of him often!"
1 big thing: Lyft files first
An exit is on the way for one of Silicon Valley's highest-profile minotaurs, as Lyft filed today for an IPO.
By the numbers, via Axios' Kia Kokalitcheva:
- In 2018: $8.1 billion in bookings, $2.2 billion in revenue, $911.3 million in losses, and more than 1 billion total rides. 30.7 million riders and 1.9 million drivers.
- Lyft roughly doubled its revenue per rider over the past two years, from $18.53 to $36.04.
- The share of ride revenue Lyft keeps has grown over time, hitting 28.7% in Q4 2018.
Between the lines: I asked Axios reporters to share what the IPO means for the company's intersections with our coverage.
- Other ride-hailing companies: There's finally a public competitor for them to be compared to. It was probably smart for Lyft to go before Uber so that it doesn't have to get compared to a global giant, Kia tells me.
- Lyft's long-term drivers will get bonuses allowing them to buy in at the IPO. (Uber is also expected to do this.) Kia emails that this might be a good brand loyalty/PR stunt exercise, but it doesn't solve the age-old question of whether drivers should be independent contractors or company employees.
- Driverless cars: Autonomy is key to profitability for Uber and Lyft, as it lowers the cost per mile and makes ride-hailing more affordable, driving up demand, Axios' Joann Muller emails. Lyft's S-1 says to expect some AVs within 5 years, with a majority of trips by driverless cars within 10.
- Environment: A big challenge for urban policymakers will be trying to ensure that ride-hailing's growth doesn't cannibalize enough mass-transit trips to send urban transport emissions upwards, Axios' Ben Geman notes.
- P.S. When ride-hailing companies go public, that will open them up to shareholder activism and pressure on climate change — the sort that's increasingly leading to new disclosures and policy steps by oil companies and recently one of the world's biggest coal companies, Ben tells me.
2. What you missed
- Canada will allow the U.S. extradition of Huawei's CFO to proceed.
- Amazon is plotting to open several dozen grocery stores across major U.S. cities, reports the Wall Street Journal. Amazon declined to comment to Axios.
- Australia set a new all-time high for the summer season, according to its weather bureau. Go deeper.
- The Trump administration is set to announce that it will end large-scale joint military exercises with South Korea, NBC News reports.
- Rep. Adam Schiff wants answers from Amazon CEO Jeff Bezos on why the platform is pushing products and content that can discourage parents from vaccinating their children. Go deeper.
- FDA Commissioner Scott Gottlieb has presented senior White House staff with his plan to effectively ban the sale of flavored e-cigarettes in convenience stores throughout the U.S. Go deeper.
- Rep. Elijah Cummings wants "full and immediate compliance" on requests for documents regarding Jared Kushner's top secret security clearance. Details.