With ridesharing giants Uber and Lyft establishing details of their plans for public offerings, companies that offer subscription services will likely see a boost, Mike Furnari, chief business development officer for HyreCar, told Auto Finance News.
With Uber valued at $120 billion in an IPO, the ridesharing company is more prominent than some major OEMs, Furnari said. “The IPO gets the message out there that ridesharing is a real option,” he said.
Lyft is anticipated for an initial public offering in the first half of 2019, with JP Morgan Chase & Co. set to lead the offering and Credit Suisse Group AG and Jefferies Group LLC to co-manage, according to reports by Bloomberg. Meanwhile, Morgan Stanley and Goldman Sacs seek to underwrite Uber’s listing by yearend 2019.
“This isn’t anything we weren’t expecting,” HyreCar’s Chief Executive Joe Furnari told AFN. “That’s why we went public in the first place, because we knew Uber and Lyft were going public in the future and it made sense for our investors and long-term shareholders.”
HyreCar, a platform that provides rideshare drivers with a pool of shared vehicles, went public in May, offering 2 million shares at $5 to $6 apiece. The stock was trading at $2.37 per share this morning.
Newly public, the startup is looking to capitalize on the eightfold growth of the ridehailing industry, Joe Furnari said, which Goldman Sachs pegs at $285 billion by 2030.
From HyreCar’s perspective, Lyft might be a “little faster with profitability” since it is concentrated in a smaller number of markets. “Lyft will probably be profitable over Uber, but that precludes any acquisition out there,” Joe Furnari said.
It is still uncertain how the IPOs might impact auto financing overall, but Uber/Lyft IPOs could mean the industry is getting more comfortable with the idea that ridesharing is a valid alternative to car ownership. “Companies going public is a sign that the industry is maturing,” Mike Furnari added.