Public distress

摘要

ON MARCH 29th Lyft became the first ride-hailing company traded on a stockmarket. The company's share price jumped by 9% on its debut, valuing it at $22.4bn. By May 7th, the day it reported results for the first quarter as a public company, it was worth $17bn. Some investors thought even that was too generous. Lyft's share price fell by another 11% the next day. Although it posted quarterly revenues of $776m, nearly double the level a year ago, the company also recorded a loss of $1.14bn, more than it lost in all of 2018. Most of that was down to booking stock-based compensation plans foremploy-ees, who earned $894m from Lyft's initial public offering. Lyft's chief financial officer, Brian Roberts, conceded that 2019 would be its "peak loss year". It will "move steadily towards profitability" thereafter, he promised.