November 28, 2019
Lyft and Uber have two distinct business models that will impact the way forward, industry experts said. Lyft is focusing on ride-hailing in North America, whereas Uber is a global company with several businesses including food delivery and services for truck drivers.
“Lyft has a clear, defined path to profitability,” Santosh Rao, head of research at Manhattan Venture Partners, said in an interview.
Uber, on the other hand, has “too many moving parts,” he said, adding that the ride-hailing business is profitable but the other ventures are weighing Uber down.
Even so, Rao said he thinks both companies will reach their profitability goals around 2021.
“As long as there is a path to profitability, a few months here and there does not matter,” he said.
Fourth-quarter earnings will be key for Lyft since stock compensation and IPO lockup period expenses will be behind them, Rao said. While Lyft’s lockup period expired Aug. 19, Uber’s ended Nov. 6.Read Article
November 28, 2019
Alibaba’s successful debut in Hong Kong “validates” not only its business model but validates the ability of the Hong Kong exchange to offer sufficient liquidity, early Alibaba investor Santosh Rao of Manhattan Venture Partners said Tuesday on CNBC’s “Worldwide Exchange.”Read Article
November 26, 2019
“Companies will start prioritizing what the market is telling them they’re worth in the secondary market,” said Andrea Lamari Walne, a Silicon Valley-based partner at merchant bank Manhattan Venture Partners.
In secondary markets, investors buy and sell shares of a private company among themselves.
“Companies are taking a very hard look at secondary transactions as an indicator of the possible performance leading into whatever form of public company they’re going to be,” she added.Read Article
November 11, 2019
“The general level of interest in making investments before the IPOs is crazy, it’s in the clouds,” says Andrea Walne, a partner at Manhattan Venture Partners.
Entering before an IPO helps an investor build a large stake more easily In a traditional IPO, companies usually sell a limited amount of shares and investment banks decide who gets it.Read Article
November 1, 2019
As most ConsumerAffairs readers know, ridesharing services have been on a rollercoaster ride for the last few years. One market observer thinks that this move might be just the thing Lyft needs to get it off that roller coaster.
“This is in line with the company’s original mission to replace car ownership with car renting/sharing,” Santosh Rao, Head of Research at Manhattan Venture Partners, told ConsumerAffairs.
“With a ubiquitous, end-to-end inter modal transportation offering, Lyft believes that it can usher in a world where people will not need to own a car and all the hassles that go with it — cost being the biggest one — and focus more on living their lives more fully.”
It’s too early to tell if and how much Pink might affect Lyft’s bottom line, but the signs are pointing in a positive direction for the company.
“With three strong sequential quarters right off the gate, a rational pricing environment, strong unit economics in its core market, and compelling operating leverage in the model with a clear path to profitability, we remain bullish on the Lyft story,” Rao said.Read Article
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