Lyft recently became the first ride-hailing company to go public with a market value of $30 billion. The company raised $2.38 billion in its IPO with its stock opening at $87.24.
While Lyft celebrated some more years of runway on the other side of the town many of Uber and Lyft drivers went on strike hoping to bring attention to the issues of low wages and unsatisfactory working conditions offered by these ride-hailing giants.
Both Lyft and Uber as a way to detach themselves from providing their drivers – workers compensation, health insurance, and paid time off have classified these drivers as independent contractors, which means these people can’t even negotiate for better working conditions or higher wages.
Apart from these issues Lyft also suffered losses of $911 million in 2018 and might never become profitable. The ride-hailing giant was in need of serious cash injection, but with all these issues hanging around their head and the possibility of never becoming profitable it would have been a hell of a task to raise money privately so that’s why IPO.
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