Lyft Said to Have Identified Underwriters Ahead of 2019 IPO

Ride-hailing company Lyft has chosen JPMorgan Chase & Co, Credit Suisse and Jefferies as underwriters for its initial public offering, slated for the first half of 2019, according to a person familiar with the matter.

The source did not want to be identified because Lyft's plans were still private.

Reuters had earlier reported that Lyft was in talks with JPMorgan to lead its IPO, after rivals Goldman Sachs and Morgan Stanley decided not to pursue such a role out of loyalty to another IPO hopeful and Lyft's larger competitor, Uber Technologies.

Earlier on Tuesday, the Wall Street Journal reported that Uber could be valued at $120 billion(roughly Rs. 8.8 lakh crores) in its IPO, expected in 2019.

JPMorgan declined to comment. Credit Suisse did not immediately respond to Reuters' request for comment, while Jefferies was not available for a comment.

Lyft also declined to comment.

The two IPOs are widely seen as a litmus test for investor tolerance for lack of profitability when it comes to iconic technology unicorns.

Uber and Lyft have taken hits to their bottom lines in order to attract drivers and enter new markets, although they have made strides in recent years in narrowing their losses.

Like Uber, Lyft offers an app that lets passengers request rides on their smartphones. It was founded in 2012 by technology entrepreneurs John Zimmer and Logan Green, three years after Uber.

© Thomson Reuters 2018