Rise comes as losses shrink
Airport Shuttle Service and taxi vans wait in the taxi loading zone at the Eastern Iowa Airport in Cedar Rapids on Tuesday, Aug. 23, 2016. The Eastern Iowa Airport is revising its rules and regulations to address the addition of Uber, Lyft and other ride-sharing services. (Liz Martin/The Gazette) Lyft Inc.’s bookings and ridership surged in the first quarter, suggesting the company benefited from user defections and management turmoil at larger rival Uber Technologies Inc.
Lyft also told investors in fundraising documents obtained by Bloomberg that it was beating internal growth targets, an encouraging sign for the No. 2 U.S. ride-hailing company. Even so, the start-up has a long way to go to meet its goal of profitability by 2018, with first-quarter losses easily topping $100 million.
In April, Lyft said it closed a $600 million round of financing, valuing the company at $7.5 billion. Though it’s been quiet about the timing of an initial public offering, new Lyft investors, like private equity firm KKR & Co. and asset manager Baillie Gifford, generally expect the private companies they back to go public within a few years.
“Lyft had an incredible first quarter as we continued to focus […]