Lyft is growing quickly ahead of its initial public offering but continues to bleed money and may struggle to turn a profit, according to a federal filing.
The company released its financial details for the first time on Friday, giving the public a glimpse into its performance before deciding whether to buy into the ride-hailing phenomenon.
FILE - In this Jan. 26, 2015, file photo, Lyft co-founder John Zimmer displays his company's "glowstache" following a launch event in San Francisco. Ride-hailing giant Lyft is releasing financial details about the company in a federal filing before it begins selling its stock to the public. (AP Photo/Noah Berger, File)Lyft reported $2.2 billion in revenue last year - more than double its $1.1 billion in revenue in 2017. That continued a growth trajectory that saw revenue skyrocket more than 200 percent in 2017 compared with 2016, when the company brought in $343.3 million.
But Lyft is still losing money and its executives warned it may struggle to turn a profit, according to Friday's filing. The company lost $911 million last year and nearly $3 billion in total since 2012 while raking in $5.1 billion in venture capital.
Its cash balance also is shrinking. Lyft had $517 million in cash and equivalents at the end of last year, about half of what it had at the end of 2017.
Lyft has been in a race with Uber to be first to offer its stock to the public, and has positioned itself as the affable alternative to its larger and more ubiquitous rival. Uber, which struggled with public relations setbacks in the past, expects to file its IPO later this year.
Together, the two could raise billions of dollars to fuel their expansions and give investors an opportunity to see how the companies plan to become sustainable.
Lyft's filing says that its co-founders - CEO Logan Green, 35, and President John Zimmer, 34 - will keep significant control of the company after it goes public and "will be able to significantly influence any action requiring the approval of our stockholders," including the election of board members, a merger, asset sales or other major corporate transactions.
The company's share of the U.S. ride-hailing market was 39 percent in December 2018, up from 22 percent in December 2016, according to the filing, which cited growth from new drivers and riders as well as increased ride frequency. It reported 30.7 million riders and 1.9 million drivers in more than 300 cities in 2018, and has given more than 1 billion rides since its inception in 2012, according to the filing.