Lyft
Ride-sharing app Lyft was founded in 2012 and became a publicly-traded company in March 2019. With a valuation of $24 billion at its IPO, stocks opened at $72 a share. The stock value has dropped significantly since then, with the current value hovering around $45.
Why Lyft Isn’t Profitable
Lyft’s operating costs — including operations and support, research and development, sales and marketing, and administrative costs — have consistently eclipsed its gross profit. In 2018, for example, its operating costs were nearly double its gross profit, amounting to a net loss of $911.3 million inclusive of income taxes, Crunchbase reported.
Although Lyft hasn’t turned a profit yet, its chief executive Logan Green told The New York Times that it could be profitable by late 2021.
“We crushed revenue expectations,” Brian Roberts, Lyft’s chief financial officer, told The Times. “We have put out a firm date to achieve profitability. I think that is unique.”
