Lyft shares debut on Wall Street

By CNN Business

Updated 10:28 a.m. ET, April 1, 2019
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11:04 a.m. ET, March 29, 2019

Lyft talks up new city investments

From CNN Business' Matt McFarland

Lyft announced a program to invest in cities during its bell-ringing celebration.

The company said Lyft City Works will invest $50 million or 1% of its profits yearly — whatever is larger — in the cities it operates in.

Lyft’s first partner was fitting, Los Angeles, where CEO Logan Green grew up, and became inspired to find alternatives to car ownership.

Los Angeles will receive $5 million, which will fund rides for the staff and residents of the mayor’s housing programs, and build electric vehicle infrastructure.

Program details:

  • It'll form advisory councils of Lyft drivers, employees and local leaders in other cities to review applications for non-profits seeking Lyft’s funding. Then it will decide how to invest.
  • The money will largely be spent on free rides for non-profits and transportation infrastructure, such as docking stations for bike and scooters. The investments should also benefit Lyft, which operates bike and scooter-sharing services nationwide.
  • The infrastructure funding will go into underserved areas. Motivate, the docked bikeshare company Lyft acquired in 2018, has been criticized previously for not serving low-income areas.
12:45 p.m. ET, March 29, 2019

Wall Street drives higher ahead of Lyft IPO

From CNN Business' Matt Egan

Wall Street is riding high as Lyft prepares to make its debut in the public markets.

The Dowjumped 100 points, or 0.4%, on Friday morning. The S&P 500 advanced 0.5%, while the Nasdaq climbed 0.6%.

Friday is the final day of what's been a fantastic first quarter for stock investors. The S&P 500 has surged 13%, leaving the index on track for its strongest quarter since 2009.

Lyft is scheduled to debut on the Nasdaq under the ticker symbol "LYFT" on Friday morning. Boosted by strong demand, Lyft priced its IPO at $72 a share, valuing the ride sharing company at about $24 billion.

BlackBerry (BBRY) jumped 13% after the company’s earnings and revenue topped expectations.

Wells Fargo's (WFC) post-Tim Sloan bump proved fleeting. After opening more than 1% higher, Wells Fargo turned negative and then fell almost 2%. Sloan, who announced his sudden departure late Thursday, will be replaced by an outsider.

11:57 a.m. ET, March 29, 2019

Lyft co-founders ring opening bell in LA

From CNN Business' Kaya Yurieff

In an unusual move, the Lyft co-founders rang the opening bell for their big Wall Street debut thousands of miles away in Los Angeles rather than at the Nasdaq.

Logan Green and John Zimmer, along with others from the Lyft team, cheered and clapped at the market open as pink confetti fell from the ceiling.

Green and Zimmer are holding a media event Friday in a converted warehouse in Los Angeles, where Lyft is committing funds each year to support transportation initiatives in cities, starting with Los Angeles.

9:23 a.m. ET, March 29, 2019

Lyft IPO will lift the fortunes of its co-founders

From CNN Business' Paul R. La Monica

This should be a happy day for Lyft CEO Logan Green. Green, one of Lyft's co-founders, owns a big chunk of Lyft (LYFT) stock. At the IPO price of $72, his stake is valued at a little more than $600 million.

Fellow co-founder John Zimmer, who is Lyft's president, owns a stake worth about $416 million. Green and Zimmer aren't the biggest shareholders -- but they control nearly 50% of the shares with super-voting rights.

Other investors that will cash in when Lyft starts trading? Japanese e-commerce giant Rakuten, General Motors (GM), Fidelity, VC firm Andreessen Horowitz and Google owner Alphabet (GOOGL).

11:08 a.m. ET, March 29, 2019

Kicking off a Wall Street debut from ... a converted warehouse in Los Angeles

From CNN Business' Seth Fiegerman

Lyft's co-founders kicked off their Wall Street debut in an unusual location: a converted warehouse in Los Angeles, thousands of miles from the Nasdaq, where their company is set to begin trading later this morning.

Logan Green and John Zimmer joined a procession of other execs and the city's mayor, Eric Garcetti, for a press event to announce a new pledge. The company plans to invest $50 million or 1% of its profits, whichever is greater, each year to support transportation initiatives in cities, starting with Los Angeles.

"When we ring the bell today, we are not just ringing the bell on a celebration of a unicorn ride-share company," Garcetti said at the event. "We are celebrating a new standard for public private partnerships." 

Zimmer said:

"Lyft has been successful against big odds because we have always prioritized the long term sustainable growth of both our community and our company."
8:16 a.m. ET, March 29, 2019

H&M shares rocket higher on signs of a turnaround

From CNN Business' Charles Riley

Shares in H&M advanced 13% in Stockholm after the apparel retailer said it was selling fewer items at a discount, a sign that shoppers are responding to a turnaround strategy that was put in place after a series of dismal quarters.

The Swedish retailer said that profits in the three months ended February dropped to 1.04 billion Swedish kronor ($112 million), but that was better than analysts had expected. The company said it was gaining share in key markets and selling more products online.

H&M has struggled to keep pace with rivals that were quicker to recognize the need for building a major online sales presence. Its stock has dropped by a third over the past two years.

10:17 a.m. ET, March 29, 2019

Lyft's IPO, by the numbers

From CNN Business' Seth Fiegerman

Lyft is set to make its Wall Street debut on Friday, making it one of the largest tech companies to go public in the last decade. Here are the key numbers to keep in mind as Lyft begins to trade:

  • Lyft posted a $911 million net loss in 2018, more than any other US startup has lost in the year prior to its IPO.
  • But revenue doubled to $2.2 billion in 2018 from the year prior.
  • The company had 18.6 million active riders in the final three months of 2018 and 1.1 million drivers.
  • Lyft's revenue per rider in the fourth quarter: $36.04.
  • The company's two co-founders will have nearly 49% of the voting power over the company after it goes public.

6:25 a.m. ET, March 29, 2019

Perks on perks for Lyft drivers

From CNN Business' Matt McFarland

As much as it's grown, Lyft is still looking for new ways to lure drivers to its platform.

The company said this week that it will open its own repair shops nationwide, offering deep discounts on things like flat tire fixes, brake work and oil changes, and provide free bank accounts in a bid to attract and retain drivers.

Lyft announced the perks on Tuesday, before its IPO.

The San Francisco-based tech company, which lost $911 million in 2018, must convince investors it can turn a profit.

Opening auto service centers and offering bank accounts are added costs for Lyft, which will sacrifice its profit margin for the centers to give drivers better deals, according to COO Jon McNeil.

But the new programs aim to improve driver satisfaction and retention, which would help Lyft's bottom line.

6:34 a.m. ET, March 29, 2019

How Lyft got to this point

From CNN Business' Michelle Toh

We all know Lyft for its fuzzy pink mustaches and reputation for its relatively "friendly" drivers.

But did you know that back in 2007, the company was called Zimride? The idea first came from co-founder Logan Green, who started off wanting to offer long-distance ride-sharing between college campuses. 

Here's an interactive look at how the business took off — and gained ground to become a $24 billion transportation giant.