Uber is the largest ridesharing app in the world. Lyft recently filed an initial public offering. An initial public offering, or IPO, allows a company to raise billions of dollars in capital. The day that Lyft had the IPO, the stock rose rapidly. However, in the days since the IPO, the stock price has fallen. The leadership team at Uber is preparing for an IPO.
Uber has a more diverse revenue base than Lyft. While Lyft only earns revenue from ridesharing, Uber also has a division of the company known as Uber Eats. Uber Eats helps companies deliver food to customers all over the world.
Valuing a technology stock, such as Uber or Lyft, is extremely difficult. In most cases, these companies are not earning a profit each year. Instead, investors are hoping that companies can leverage growth into higher earnings over time.
Some people are skeptical of investing in Uber after what has happened to Lyft. Lyft’s stock price is now below the IPO price. Many investment analysts are shocked that few people are interested in purchasing the stock of Lyft.
Over the past few years, the leadership team at Uber has made numerous adjustments to the company. Not only have expenses decreased, but the company has invested in new technology. Uber is one of the leading companies in the autonomous vehicle market. Numerous people at Uber believe that autonomous vehicles are a significant opportunity to increase market share.
Few people enjoy going to restaurants for food. Instead, many young people would rather order from a restaurant and pay for delivery. Food delivery is an industry that is expected to double over the next decade. Uber is already in a robust position to take advantage of this growth. Some people feel like Uber will have a better IPO performance than Lyft. However, other investment experts recommend avoiding both stocks.