Uber and Lyft have revolutionized the wildly out of date vehicle-for-hire industry, and both are looking to cash in on their paradigm shift in 2019. Both rideshare services are projected to go public this year with valuations around $100 billion, a massive number that reflects the immense niche that ride-hailing services have carved out in the market.
Uber’s IPO could be the largest ever for a company out of Silicon Valley.
So while cashing in is the end goal for a corporation, the public marketplace is notoriously finicky and troublesome to navigate—just ask Twitter CEO Jack Dorsey. Twitter has famously struggled to increase its revenue growth as it attempts to expand its platform and profitability avenues. A declining user-base hasn’t helped that cause.
But Uber and Lyft can be viewed through a different lens, as they provide a tangible service that has improved upon an industry desperate for change. Do you recall pacing around the living room when your cab is 30 minutes late and your flight is due to depart in under an hour? Or the classic “credit card machine is down” when you pull out the plastic to pay your fare, leaving your scrambling to find cash. Ridesharing services have eliminated these occurrences altogether, putting pressure on traditional taxi services to adapt, sue, or go out of business.
So both companies should enjoy a prosperous run on the market as they continue to be the go-to service for snagging a ride. Both have officially filed paperwork to go public, but there’s no confirmed date for the IPO. When that occurs, Uber and Lyft will both make a metric ton of cash.