, you hear autonomous as part of the lyft story and valuation to lyft story.ever the price is set today, would that imply that gm's cruz unit or tesla, that perhaps their valuation should come up or be adjusted according to the latest marker in the market? >> fair point. henry's view, it is going to be awhile i think it gets much more complicated if you try to value the autonomous part. you obviously have every car manufacturer doing their own thing. yes, there is a future there, but the cost now to make it work are high one point i will make is this. percentage of 16-year-olds with driver's licenses dropped precipitously in the last 30 years, particularly the last few years. phil may well be right on car buying, but interest in licensure to drive a car is down. >> talking about lyft and ridesharing today. to go to jon's point, many startups haven't weathered a downturn or recession. is that something investors need to keep in mind too? >> it has been ten years of incredible equity growth in this country and for the world overall. i think that's a very fair po

now, when we see a lot of green on the screen, it's not necessarily all lyft, just lyft or lyft at all. one single market can send the markets into a tizzy. today that word was constructive. that's all the bulls needed to hear. who said it? technically, nobody said it. but as he was leaving beijing on his way back to washington, treasury secretary steven mnuchin tweeted that trade talks between the u.s. and china teams were quote, constructive. the most immediate reaction, chip makers which have huge exposure to china, they sell into asia, they manufacture in asia, they started popping. they are all in a basket in the philadelphia semiconductor index and that is gaining steam, even as we head into the final hour of trade here, up 1.75%. you can see what a jump from yesterday. but one stock within that basket is having an outsized reaction. micron technologies. look at micron, up five full percentage points while the rest, whether intel or nvidia, up about 1% or 2%. if you claw down a bit deeper as we at "countdown" tend to try and do for you, according to research firm clsa, amazon may

lyft is not the first one.y're not getting 50% valuation over the last round of funding, uber talking about 78 billion last round, i hear numbers of $120 billion. that's what i'm concerned about, four, five, six months down the road, how long can you keep doing that >> well, i don't think the last round valuation is relevant. what's relevant is compared to other tech companies, you look at the comparables, they're right in the fair market zone. and in technology you have companies like amazon 10, 20 year stories in 2001 amazon only had 3 billion revenue, was losing $1.4 billion $1.4 billion in 2001, in 2019 numbers, those are bigger losses than uber and lyft in 2018 >> david, you're invested in lyft will you stay invested in this company or stay invested in careem if it is taken over by uber or are you pulling out your money and put it to work somewhere else >> i think i would stay in i think both of these companies are going to continue to grow. as the population gets younger, there are more and more people co

>> again adding uber air and lyft more of a domestic play there is a bid to lyft for a reason investors are getting involved for a reason because of their growth potential so there is an excellent case to be an owner of lyft. >> the growth potential could be a double edge sword. if you grow more and you lose more stefan, they have trimmed their losses relative to their growth. is there a path to profitability or will these guys figure out a way? >> of course most dot-com-comdot-coms that yn the most famous one was amazon as a shareholder you're betting on the team that they know what they are doing from the interview that andrew ross sorkin just did with the co-founders they know their economics, they believe in it and anyone who has seen this knows that there is a lot these guys can do to grow their top line and trim the bottomline that's the name of the game. >> stefan, the only thing i would say is the company is fairly mature. it's been private for a number of years not like it just started yesterday. they still can't show that path to profitability at the same time you're talking a

lyft has filed for a u.s.nitial public offering, giving the public a first look at crucial new financial information about the company. from the filing, we learned lyft's revenue is growing significantly. it doubled the number from the year before, but losses are a problem, totaling over $911 million. i want to bring in olivia zaleski and tim sullivan. lyft is losing have as much money as it is making, olivia. what are the takeaways from the s-1? olivia: they nearly double the revenue, but with that came significant losses. we're looking at 911 million, which is a growth of 77% over the year before. investors seemed excited about lyft, but also questions about the losses. this is nothing new. most technology companies when they go public are losing money. emily: tim, now we know a little more about how lyft's business compares to uber and uber's revenues were $11.4 billion. tim: i think uber is not growing and lyft is. year-over-year growth of 2x on revenues, their losses are acceptable. they are on paths to c

, lyft has a great story.'s a lot of uncertainty about it, but if you're looking at say what's the addressable market here? i mean, how big could their market be? i haven't really seen a sophisticated analysis of that, but is it all local transportation is it all automobile sales, i mean, but we're talking something really big here, and they can also go into markets that don't real very a local transportation market. they don't have cabs and things like that, so it could be really, really big, and then you have the technological innovation area. if we get to the day, you know, of self-driving cars, all those labor problems and all those costs of drivers go away that is a huge upside. now it -- it's a long time to go -- >> a long way to go, but i'm telling you, what matters is the story. it's not like -- investors and ipos are not thinking about in many cases they should be, but they are not thinking about the practical aspects of getting there, but this is a -- i'm just saying that this is a really good story.

the valuation of lyft beginning is good.he question will be how much the two companies are spending against each other and how competition normalizes. those things, dependence on decisions lyft makes, could hurt uber. the big valuation would be great for uber. it allows them to say look, ours is more than that. emily: lyft has priced its shares at the end of $72 a share. your reaction to that? olivia: i would expect them to go slightly higher than that based on conversations with investors today. it makes sense that want to be conservative. they don't want to leave money on the table. they don't want to have too much of a pop. i think it is right they come out at that price. eric: i am skeptical. they get to set the initial price expectations. i don't think we can read too much into the pricing games ahead of the ipo. what will matter is the value lyft holds over time on the public markets. seeing the numbers go up is good for the company, but i'm not going to read a ton into it. emily: cnbc reporting lyft pricing its ipo at

lyft will turn a profit anytime soon.much more interesting day when they do the ipo ifi interesting day when they do the ipo if ijust interesting day when they do the ipo if i just let it interesting day when they do the ipo if ijust let it go with the pre— ipo stock. tommy stadlen is a technology entrepreneur who's now a partner at firstminute capital, a $100 million tech investment fund. what do you make of lyft‘s move? this will be big. it is a big day. a day that many people in tech have been waiting for. the first of what people hope will be a bumpy year in technology ipo. everyone has been watching the pricing carefully and it looks like it will be on the upper side which is rate news. but not too high? $24 billion? still a loss maker. it lost almost $1 billion last year and investors are betting that lyft can make great strides in autonomous vehicles. it is the only clear way they can get to profit. that will put drivers out of work however. and there has been a lot of controversy about how lyft and goober treat th

jim referenced lyft. i know we have been showing it mixed in the bottom of our screen if i was to tell you that lyft went public today. there was all of this what feels like a little euphoria about a popular company going public we're a big household name of this magnitude it only closed up by 10 to 12% what would you say to that >> i would say the money has been made -- >> it's not a disappointment >> no, no. it's been made by series a, series b, series c, the syndicate. the real money is made by people with biggest risk and the most connections with the company early. whatever is left for individuals investors buying in the aftermarket is a crap shoot. that's never changed throughout time i wouldn't look at and say that's indicative of something broader about something being right or wrong with the overall market >> what does it say, look, i'm looking at any notes i reference twitter and baba and snap you have a gain of twitter on 23%. n snap, 44 what is gain of 11.5% say relative >> what does this mean

lyft says that uber says that the tricky part for lyft is that it's not investing in the same way.east that's not really the goal. i think lyft is going to have a harder argument to make. in terms of growth, in the u.s. it's pretty much saturated >> those all sound like caveats to me. why is it worth $24 billion then >> it comes to -- look, we've had this odd situation not just that the companies remain private for so long but this huge and fast growing part of the economy, the way people get investors. even on a straight basis, if you own autostocks maybe you want to hedge. so i don't know that there's an answer to the question of how long the public market is going to allow them to invest and never have a side to profit. >> by coming so late in the game, is it more likely that the retail investor who buys today is more likely to get -- be the one left holding the bag >> you know, i don't know if it's more likely but i do think that you have a better window on exactly what this business is, right? literally the -- we did have a couple analysts that came out before the ipo with the

lyft was one of them.will see a flood of ipo's, potentially uber, airbnb, slack, pinterest. this is a new trend. these companies have been building for a long time and now they are coming out of the gate. >> i think all the companies you named are high-quality companies with excellent businesses, turn -- tremendous unit economics, good management teams and so forth. i think it will be healthy for the ipo market. when high-quality services go public, it is great for the economy, the company, great for investors and the country. i have high hopes. i don't know about high expectations, but it is exciting. emily: do you think we will see snap where it had all this fanfare and 25 billion dollar valuation, and now it is almost unheard of? >> anything is always possible. that was a very company specific kind of event that occurred. i think snap went public much earlier in its maturity than these other companies. emily: is there as much value today for public market investors? >> i think one of the tragedies of th

lyft launches peer to peer ride hailing app in 2012.had already expanded in 300 markets and available to 95% of america. they've facilitated over a billion rides. lyft is the number two player but now have 39% market share in the ride sharing business with 18.6 billion active riders since december and still has a ton of room to grow and believe we're in the early innings away from car ownership and incredibly bad oil stocks suggests they might be right for a lot it seems crazy why shell out tens of thousands of dollars that sit income a parking lot and you got to pay insurance for. as lyft sees it americans spend $1.2 trillion on transportation every year they think more and more of that will go to the ride-sharing space which is a duopoly between lyft and uber. when you look at the numbers they are impressive, lyft more than doubled revenue although that's deceleration for the 200% growth they posted in 2017 the company is stale far from profitable because they're spending so much, the opportunity costs, but its margins improving not g

lyft now claims it controls 39% of the u.s.e-hailing market, and is just starting to go international, launching in 2018.to in ottawa city, in it is keeping up with its top scooters etting in on sharing, buying motivate which runs "the city" they are w york and working on self-driving cars. beefing up staff working on autonomous to 300 people. they have courted major investors like rakuten and andreasen horowitz, but aiming to go public, they hope to double the ride count from 500 million in 2017 to one billion in less than one year. revenue jumped 541%, to $2.2 billion last year, from just under $343 million in 2016. an estimated valuation of $20 billion to $25 billion. despite losses increasing to $991 million in 2018. while lyft was second out of the gate to launch, it is first to aheadlic, weeks or months of uber. in an increasingly volatile tech market, the hope is investors will hail lyft's ride. emily: lyft's ipo roadshow went into new york today. demand es saying the exceeds available shares. joining us to discuss, eric

if you look at a lyft driver, the contribution margin of his business to lyft is in excess of 10% of total booking 50% of revenues. each driver, very profitable in order to become profitable, lyft needs to maintain their market share keep growing revenue and lower marketing expenses invest into hiring additional driver and encouraging usage and offering discounts to gain market share against uber. >> they spent 37% of revenues in 2018 on marketing specifically, pierre, and presumably, you know, after the ipo, they could lift the gas off the pedal in terms of that marketing spend but on the driver front, with such competition with uber wanting to keep his drivers, et cetera, can they continue to press the drivers to contribute, quote unquote, as much as they do to the company? or do they have to start paying up that's a major cost for any sort of asset like transportation cost it's a driver cost and a labor cost. >> absolutely. so two things. if you look at it like in the near term,couple of years, the key you mentioned, how is the competitive balance stabilizes with uber my big convi

emily: where is lyft in five years? >> in five years, we want you to be subscribing to a package of miles. similar to the way you have a cell phone with a number of minutes, we want people to completely get rid of their car and jump into the world of transportation as a service and subscribe to miles. so you don't have to think about each trip. time, something like lyft a monthly thing, a yearly thing? >> it will still have to take shape, but i think people will be subscribing to miles. emily: our interview there with the lyft founders, logan green and john zimmer. meantime, apple has canceled its air power charger after more than a year of delays. the device was announced in 2017 alongside the iphone x and was slated to launch last year. apple's senior vice president said, after much effort, airpower will not achieve our high standards and we canceled the project. we apologize to those customers who were looking forward to this launch. we are committed to push the wireless experience forward. joining us to discuss, ali

lyft now claims it controls 39% of the u.s.iling market, and is just starting to go international, launching in toronto in 2018. it is keeping up with its top rifle by getting in on scooters and bike sharing, buying motivate, which runs the citi bike in new york, and they are working on self driving cars. beefing up staff working on autonomous to 300 people. they have courted major investors like rakuten and andreasen horowitz, but aiming to go public, they hope to double the ride count from 500 million in 2017 to one billion in less than one year. to $2.2jumped 541%, billion last year, from just under $343 million in 2016. an estimated valuation of $20 billion to $25 billion. topite losses increasing $991 million in 2018. while lyft was second out of the gate to launch, it is first to go public, four months ahead of uber. in an increasingly volatile tech market, the hope is investors will hail lyft's ride. ipoy:'s ipo road -- lyft's roadshow went into new york today. joining us to discuss, eric newcomer, who was at the event.

theie: lyft our stock of hour.his is bloomberg. ♪ so with xfinity mobile i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need, and still save hundreds of dollars. do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $250 back when you buy a new samsung galaxy. click, call, or visit a store today. vonnie: it is time for our global battle the charts. not just any global battle. we are still into our brackets. you can see all the charts on the bloomberg, just run the function gtv . today's contestants are in a palmer and michael regan. hannah is going first. >> today we are talking about cryptocurrencies and blockchain funds. the blue bar shows how hedge funds trade around bl

and can do for lyft. lyft is much more pure play. uber has uber eats and freight and all sorts of other things. >> if you look at that slate of expected ipos, this is a good one to come first. it's going to get investors focused on a company that's been tramp transformative a lot of the data looked pretty good they made pretty good improvements over the last year and now they're butting up against 40% market share i think it's going to be a really popular hedge fund trade. long live short uber when uber gets out. >> is that on a valuation thing or uber is seen as the evil empire >> as the far off number to taking market share in the u.s., it's very focused on the ride-sharing market as a pure play >> i think the size of the money they're raising is not a lot of money. what i'm seeing here is they're starting out -- >> they just file that >> in terms of size, though, i do think coming first, and this will be, i believe, a significantly smaller deal than uber and that's very bullish ultimately it's still that pure play i think it's goi

to lyft.tled drivers showed up at what was supposed to be lyft's roadshow location and the problem was that it had been moved to another location. eric, who covers lyft for us in new york. eric: what a coincidence. lyft and its investors as part of the roadshow were supposed to go to the omni. a group of protesters, some of them drivers who were upset about how lyft pays its drivers were out to protestant signal to investors that they need to hold lyft accountable. lyft relocated to another location to meet with investors in a more private place. move thed lyft location because of the protest? eric: one person told us it was a matter of space. it does seem a bit convenient that lyft was able to sidestep the protest. either way, i think the protesters were able to get their message out by being in front of a very public hotel where many people thought lyft was going to hold its roadshow. emily: how do the issues of how lyft and uber, have those, but the roadshow and are investors concerned abou

we are still waiting for lyft.price that it opens at will be $85 to $87 per share. now, that would, if that's the case, that would be a nice pop from the $72 offering price, you could call it. that would be a nice pop. $85, $87. ashley: 20%. stuart: yeah. >> the company would raise -- stuart: $96 they are closing in on. they are closing in on it. we are pretty close. any moment now, we expect that first trade. when it happens, you will see it. >>> bad news, more of it, for lawyer michael avenatti. under investigation by irs, he's reportedly dodged taxes for decades and living a luxurious lifestyle. ashley: living the lifestyle we would all love. according to federal prosecutors, since 2010, he hasn't filed any personal income tax returns, even though about $18 million came into his bank account. same story on his law firm, avenatti and associates. the feds say look, he recorded $38 million in deposits, also has not filed any tax returns. he has a huge tax bill. while that was going on, he lived in a $100,000 a mont

lyft to me, this is not snap i'm not a lyft bull. i didn't try to buy the company, i didn't try to get into the ipo. but they're growing. they are growing they went from 20% market share to 40% market share. yeah, they're losing more money look at the addressable market here how about google with wamo and where the legacy mega cap players are already threats to these guys before they ever get out of the gates it's important to point out where transportation is a service is a new investable place in the same way social media was and this is not snap it's not. >> when i go to google maps and type in guy adami's house -- >> are there statues out front, like marble? >> fountains large fountains. >> metal gates >> it already tells me how to get there and there's another piece to that part of the puzzle for transportation as a service for google with the deep pockets, with the wamo to get dt point last night you talk about valuation that does make sense, it is probably alphabet at these levels to tim's point, they have created a new asset

lyft has a limited geography. they are mainly in the united states they've recently gone into canada. compared to uber which is in something like 58 and 59 countries and over 300 cities. the biggest concern that i would have about lyft is they are not profiable and they have never been profitable. they have lost $3 billion since 2012, and last year they lost over $900 million. there ipo is the largest loss for a company that has ever done an ipo, and there's other things like their expenses, sales and marketing, acquisition of customers is very high, and it's also insurance , and their drivers, so how do they lower their costs? the easiest way would be self driving cars, but the research i did suggest they might be behind the curve on that. >> so many other committees are looking into that as well. >> for san francisco-based lyft, we will have to see how this stock goes in the days ahead. appreciate it. >>> are covered to the aikido boom continues after the break. we'll look at the effects of all these new million

lyft's structure catching attention. we into uber is not going public with one reminder here, dual class structure is two classes of stock, each with distinct voting rights meant to protect the founder. over the weekend, the council of institutional investors expressed deep concern over lyft plan structure calling it egregious, likening co-founders to supreme monarchs in perpetuity they reiterated call for them to curb such listings it reviefs the debates on voting rights it worked out in terms of outperforming broader markets, and snap founders control over 90% of voting rights and seen the stock plummet. important to note we don't know what lyft structure will look like in filing, voting rights section is a place holder. it doesn't yet tell us how much control co-founders john zimmer and logan green will have. i am told from a source together they'll have slightly less than majority control and there will be a sunset provision. it remains to be seen what that looks like lyft i want to mention has an independent chair,

lyft beating uber to an ipo. the same sometime later this year. >> listed on nasdaq as lyft. easy to remember. >> they got aood one. they're good to their employees. many are gathering in san francisco at the headquarters. >> that's where jobina fortson is live for us this morning. hi, jobina. >> reporter: good morning. yes. we just learned from someone who stepped out of building that the coffee bagels and mimosas are flowing inside. there's a big party going on. lots of fun for lyft employees. maybe not so fun for future home buyers wooerg learning fre're l experts. you mentioned uber, abe, pinterest. airbnb. the housing costs expected to rise significantly especially in the san francisco-based area. lyft ipo created essentially thousands of millionaires. employees racing into the building this morning with the extra cash. many may become potential home buyers later this month. we spoke with an expert who crunched the numbers and told us what he thinks will follow the so-called ipo tidal wave. >> we probably ex

not a bad offering price, not a bad lyft for lyft. after this. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. ifor another 150 years. the fire going ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. ♪ i can customize each line for soeach family member?e yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my l

lyft may have beaten uber to the public market, but uber is still much larger than lyft.t has a more diversified business with uber eats and a stronger international presence. however, for today lyft gets to step out of uber's shadow, expecting the company to start trading here at the nasdaq around 10:00 to 11:00 a.m. eastern. back to you. >> i'm sure we'll hear nothing about that as the day goes on, right? it's the last time you'll be on tv today >> many more hits coming to go we are excited for good coverage >> we'll look forward to it. thank you very much. >>> by the way, we're going to hear from lyft's co-founders andrew ross sorkin did a ride-along with them and at the asked what it's like gearing up for a big ipo. >> we've been going nonstop for the last two weeks we've had to raise a lot of money over the years, so -- then a whole new crop of public market investors it was fun, and -- >> so do you see this as, like, one milestone along the way? >> yeah. for us this is a milestone on our mission. our mission is to improve people's lives to be the world's best transp

lyft has filed for an ipo.icipating it might happen, but they are getting in ahead of uber. lyft started off in 2007 as a college car elaine service. -- college carpooling service. we knew that this was coming soon. it was valued at $15.1 billion in the private markets. for a higher valuation. and looking for the ticker lyft. looking for a nasdaq listing. s0.7 million writers -- rider is the information we have. we do not know if it includes the company that they bought in new york a little while ago that has an electric scooter program. emma has been looking at data related to this. emma: as you said, just getting the news. lyft has filed for an ipo to go on the filing to list sasdaq, spelled as it i regularly. we are getting numbers on revenue. in 2018, 2 $.16 billion of revenue. loss of $911.3 million. first-time time we are getting numbers from the moment. i will repeat. a revenue of $2.16 billion, a million.911.3 a $.1 billion of bookings through last year. the company also saying that they will have two c

lyft his been gaining on uber, but uber the much larger rival lyft says its ride share market was 39%8 up from 22% in december of 2016. so we know very well what uber has been through over the last few years. a lot of pr disasters. if these numbers are correct, it looks like lyft has done a lot more to eat away at that uber market share do keep in mind, though, these figures, i had to check the footnote they're coming from racutan intelligence the largest outside share holdener lyft. another thing that stood out is duel class structure s1 confirms that this is going to trade different than a public company. uber has a one class share because of the investment from soft bank, but the founders at lyft, they will have voting control of this company and that could mean a lot of things when the company goes public, like whether it's included in indexes and etfs >> yeah. also note nearly a billion dollar loss from operations in 2018 on just over -- sorry, let's see. yeah, on just over $2 billion in revenue mp revenue. so the losses here are significant. when they say no guarantee we're goin

lyft. >> taxicab. >> lyft. >> lyft. >> i was doing uber now i'm on lyft.e gets right to the point. melissa: she does. connell: uber. melissa: bulls & bears starts right now. >> president trump doubling down on his threats to close the u.s. border with mexico as early as next week, if mexico doesn't stop illegal entries immediately listen. president trump: mexico is going to have to do something otherwise i'm closing the border , i've just closed the border and with the deficit like we have with mexico that we've had for many years closing the border will be a profit making operation. mexico has a trade surplus with the united states for many years of 100 billion a year at least, and this is for many years mexico has taken a big portion of our car business, mexico is doing very well because of the

up next, lyft is our story of the hour.his is bloomberg. ♪ >> this is balance of power. >> it is time for stock of the hour. we are awaiting the first trade of lyft. it is indicated to open higher. we have been tracking all of this in london. what is the latest? >> we are still waiting. lyft was expected to start trading. it should happen soon. ipo toot unusual for an be delayed. the stock is indicated to open higher. at priced at $72 per share yesterday. price was at the higher end of an increased range. 11% of the company is being offered. it is still at less than 50%. revenues and writer should have been growing but it is still not profitable. was 911 for 2018 million dollars but investors are more focused on the growth story rather than a profitability. >> we know that lyft won't be for long.stock what other ipos are coming? uber to gobeating public. interesting research from bloomberg, saying that when it comes to u.s. market share the growth we are seeing from lyft -- uber is a more global company. also looking at a n

dave lee, a lyft driver? well, doubling up lee, a lyft driver?erica technology correspondent. let's have a quick look now at the markets. as you can see, they are all in positive territory after us stocks climbed overnight but investors are optimistic about this latest round of us, china trade talks. thank you so much for investing your time with us, and rico hizon. sport today coming up next. —— i am. british mps will get a third chance to vote on theresa may's brexit deal on friday, but this time only part of it. new zealand's national remembrance for the 50 people shot dead in two mosques a fortnight ago. the prime minister says violence and hate are not welcome. imagine a world in which you feel no pain. that's what it's like for 71—year—old jo cameron, it's all she knows. the pensionerfrom inverness has a genetic mutation which means she feels virtually no pain — and never feels anxious or afraid. she didn't realise she was different until doctors were astonished she didn't need painkillers after a serious operation. 0ur medical corresponden

lawrence has driving for lyft for four years. she snows this will help the little guys, too. >> the tech ipo tidal wave, with companies like uber, airbnb and pinterest likely to follow suit. >>> and while lyft and uber -- a pugh research center poll founld that only 30% of american adults have ever used a ride-hailing service. 61% say they have heard of the service. the remains 3% said they hadn't heard of them ought all. while the numbers aren't impressive, it is a huge increase when although poll found that only 15% had use the services. >>> ipos like this -- lieuies looks into how it works. >>> just ahead on abc 7 news at 4:00, the help for an east bay woman who came home to find her house was trashed by squatters. >> also, it's being hailed as a medical milestone. the kidney transplant from one hiv-positive person to another. >>> and president trump is ready to close the southern border again. >>> checking or traffic through walnut creek, it's moving in both direction. that's 680 northbound. stay with oh! oh! oh! ♪ ozempic®!

lyft is losing $6 perride, and uber is lose -- sorry, uber is losing $6 and lyft$1 is losing so they're both money-losing companies. that should be a red alert for invests looking at these businesses. >> if we had to pin you down, i mean uber is clearly the pioneer and much larger of the o companies. does that give it an advantage that would be more attractive for investors, or do you goith the upstart lyft? which wa you go, if you had to pick one? >> if i had to pick one, i'd go with the dominant market leader, even though we have to gift lyfi some c for being faster growing and gaining in market share. but uber iseally the giant company, and generally the giant companies tend to be t better call if you're going moe better protection and a sizable firm. >> we're just looking at some os the poiou sent us. you say this shod be part of a may be volatility and because of the financials, whh you just discussed. >> the way we would approach it is unless you're able to get shares on an esipo, the thing, especially for companies like these, which are growth companies and growing at a costs, wo

that's the good part about lyft.hey have a focused strategy they've been executing to that strategy well. >> i'm interested in some comparisons people made verbetw snap and facebook, the way instagram told snap's idea, took it as its own for expiring stories, and uber stole lyft's idea, on cheaper option. is that a fear that uber can always copy lyft's best ideas and use its size to crush them >> i don't think so. i think the market is big. they will copy each other in the end. it's almost like verizon and at&t they have the same service they will compete on quality of service, providing end to end transportation network, which is what they're building out right now. i think the management has said that they will not compete on price. they will maintain their quality of service they will keep their drivers happy. drivers are the raw material of this business. you need to keep them and manage them you can't just play pricing games with them. i think lyft is executing to a good strategy. >> it's still independent contr

if you think it's just lyft and there's only two guys in the game, uber and lyft, that's not true there are places all over the country you can go to. there are multiple others competing at a much lower level. so competition will make it that much tougher. >> i think phil makes a good point. you talked about the stampede that's coming. uber will be the test. >> yes. >> this is like an appetizer when uber, and they start talking about a $100 billion valuation, that is going to be the test that would be a fortune 100 company there by market cap. so to me -- then we know what comes after that we have pinterest, wework, the list goes on and on and on these are massive, massive market caps. when we have mega cap tech that's stalled out, is there an appetite for all these companies that are basically all losing money? >> are you saying no >> i'm not so certain if they come this close together. >> or when people are so reaching for dprogrowth that thr willing to go out and investment in these unicorns. >> there's some great tv shows on the cnbc network. this morning i was watching "squawk on t

a lot is riding on lyft. lyft is making history as a iling business to go public.atching whether it is this specific ridesharing or it is tech in general. people want lyft to be successful and want to see what happens. caroline: you are also in volunteer. many debates -- in palantir. many debates are coming in 2019. jaclyn: i think everyone is considering it. it takes time to go public, so maybe they start the process in 2019 and go into those and 20, but a lot more companies are thinking about going. hopefully, volunteer is one of -- palantir is one of them. joe: sticking with autos, more tesla trouble. elon musk says there are more .ob cuts here with more to break it down leads ourorter that autos coverage. lots going on in the tesla world right now. the headlines they want out there is a $35,000 model three. has a diminished range due to the battery. for people waiting three years or more for the model threes, are they happy with this? >> i think there are plenty of people who will say it is about time, but they're also fans who are excited and have been waiting

first list management -- lyft is talking to potential shareholders and they like what they hear. and why wouldn't they. ride share is a powerful theme and like last week i told you, lyft has a great story but the numbers are incredible last year they more than doubled sales and while it is not yet profitable, the gross margin is rising rapidly even the lyft is flush with cash and short-term investments, the company is offering 30.77 million shares of a rankin creased from $62 to $68 to $72 to -- to $70 to $72 this very evening. and i've seen them go up another level and expand the size of the deal with that advised range tonight they are planning to raise approximately $2.2 billion and that is before you count the underwriter and that could add another $300 million to the company ipo wall it is a big deal lyft is compelling it fits the mold it is going to be massively oversubscribed which is a piece of wall street gibberish so let me explain what it means when a ipo is oversubscribed investors try to get some stock on the deal. it is called very tight. really good customers might

it is excitement for lyft ipo.emand for hot stocks and people wanting to buy a piece of the future and piece of the action. therein lies challenge for investors. the stock rocketed out of the gate. demand boosted by many investors. how do you value a hot stock with a lot of potential? traditional valuations of companies. in this case many folks would have pause. get this, revenues declined over 500% from 2016, to 2018, but your losses also increased almost one billion dollars last year. so that doesn't exactly scream buy. on the other hand the company carved out a massive presence among consumers, providing 178 million rides in the fourth quarter last year alone. get this? that is up from just 29 million in the first quarter of 2016. the company is making a lot more money per rider. so lost in the fog of all this excitement, is another hot stock today, carmax. they posted strong earnings. talking used car sales increased 5%. while the notion people will stop driving cars because of ride-sharing it is not happening

you have a giant stake in pinterest, a big stake in lyft, your on the board in lyft.s your strategy? mickey: we are not softbank. it is our side business. side business has two meanings. one is to understand what is going to happen in the world. so we invest in the ridesharing company to understand what does autonomous driving mean to our strategy in the future. also, we would like to know where the sharing economy will go. so now we have a very deep understanding of the sharing economy, not just limited to rideshares. we started at home business in japan. now we are talking a potential lyft in japan. emily: lyft has not done much internationally, so that would the of the deal. mickey: if it takes place, yes. i don't know. there are lots of issues still. emily: what needs to happen? the japanese taxi market is hard to crack. mickey: yes. legally speaking, pure ridesharing is still illegal in japan. so i think we need to be very, very smart. emily: are you talking to the japanese government? are you trying to create a space for them? mickey: i am constantly talking wit

investing in uber is a bet on the future the market is huge >> uber and lyft >> uber and lyft, still untapped, long way to go lyft is predominantly focused in the united states, in north america. i think that's untapped. revenue for a ride is bigger in this part of the market. the runway ahead is long the company is untapped and market share is untapped it will grow over time at some point they have to calibrate the take rate and operating expenses and they'll come to a point. right now, it is a top line story, gross booking story and they're growing. they're coming into the ipo with good momentum. >> do you have exposure to uber? >> no. >> only lyft >> that was a conscious decision >> why >> they were at that point, there was a lot of issues with travis and the corporate culture and all of that. we thought this was a much safer bet and clearer path to profitability. >> how do you expect investors to position lyft versus uber, when they both come to market? >> i think you have to invest in both it will be a different class of investors to some extent this is a pure play with a path,

here we have lyft kicking off a really active i.p.o.th the uber and the pinterest and the big names that are coming to market. which of these invest -- would you be investors as an i.p.o. coming up? alan: no, i wouldn't be an investor but the public itself has an insatiable appetite to be in this. i think a lot of institutions almost can't afford to end the month without showing lyft on their year end statement and hat's coming up as you know in a minute. they want to print that will show that they were there. so the demand is there. and the question is how serious people are as they make this long-term holdings. i think from my standpoint, i'm always looking at the first, second, third quarter after the offering and seeing how they meet the expectations that have been given during road shows and how the metrics are -- the metrics will be important going forward and then you're going to have the metrics of one versus the other. there's no question you're going to measure uber against lyft once the second one is out. alix: fair. the othe

>> lyft or uber.chts t >> so the conversation is back to a certain extent. >> they'll buy and then it will keep going up. they have to remember to sell because eventually you're going to have to sell your lyft because here comes pinterest and then three chinese deals that nobody wants but they're going to jam down your throat. uber should move up very quickly. >> i think uber may begin its road show as soon as a couple of weeks from now you could see uber in may. >> we have to have that before we get to hamptons time. this is all anyone cares about david, it's going to eclipse any talk about the yield curve one of the most challenging books i've ever red was "inside the yield" curve by sidney homer, 600 pages about the yield curve. people devoured this like it's anna carinina. the left prospectus reads like a millennial prospectus. it's talking about how cars hurt the environment. it's wholistic, it's mindful it it's ghandi meets lyft, all right? >> i've read it too and it's interesting. of course the

after that, lyft shares are traded among investors on the nasdaq and lyft sees none of that money. >>> for the growing crowd of 2020 hopefuls it was a busy weekend. former vice president biden raising eyebrows with a slip of the tongue. here's nbc's hallie jackson. >> reporter: the 2020 attention this morning -- on an accidental almost announcement. >> i'm the most progressive record of anybody running for the -- anybody who would run. >> reporter: joe biden in front of a very friendly crowd quickly catching his slip of the tongue since he is not technically in the race yet. >> i didn't mean -- >> reporter: the former vice president expected to decide in days to make it official as senator gillibrand finally did herself after weeks of an exploratory bid. >> we need a leader who makes big, bold, brave choices. >> someone who isn't afraid of progress. >> that's why i'm running for president. >> reporter: the senator hinting at a rally next week outside the trump tower in new york. with 595 days to go, candidates are crisscrossing the campaign trail already. >> i get to be part of someth

of lyft get a big payout here, but lyft has 1600 employees . did they get a chunk of this money is well? >> reporter: the way these things are usually done if it has to do with your importance in the company, and the other thing has to do with how much you earn and how much time you've actually spent with the company, so somebody who's been there in two years is not going to get as much money as somebody of more importance that is been there for five years. that is how this thing normally works, and the reason for that is is because back during the 80s when all the bond trading was going on, there were some bond traders making hundreds of millions of dollars sitting right next to somebody who did not get squat, and as a result there were a lot of bad feelings in a part of this is to dissuade some of those things, so it's pretty fair to say that most of the 1600 if not all got something out of this. >> them if they are going be flooding the market with cash. tom vacar reporting live in the newsroom. >>> someone describe what's going on as an ipo

you're not going to cut rates fast enough. >> let's talk about lyft.n initial market cap of $20 million on a nondiluted basis. it is $15 billion as i know you have been talking about it now there has been a lot of demand this offering was over subscribed very early on remember, this is mostly constitutional investors so they may be willing to overlook big losses and very uncertain path we will see tomorrow how the broader markets and how retail investors react, guys. >> thank you very much for that. clearly the demand has been very strong and pricing range has gone towards the top of that what does it say about it generally? >> i think it says for one thing this is a pure play and a huge piece of the economy they did not have direct access to it will have a built in demand for that i think they want freshideas. >> would you buy it? >>. >> oi -- there are pockets that would buy it growth funds would buy it. analysts would buy it. i think 10% would be -- i think the stock stakes off until they report earnings. we'll have to judge it on the fundamentals i

many insist lyft will probably never turn a profit. but the city is concerned about the impact these new millionaires will have on san francisco. >> wealth inequality, housing afsh affordability, et cetera. >> reporter: he's analyzing the consequences of this rapid injection of new wealth and how to avoid the mistakes of the past. >> we'll be starting a conversation about what kind of interventions or policy strategies we can look at to mitigate those impacts and to ensure that everyone here is able to live and thrive in san francisco. >> they use our bodies, they use our time, and in the end, they're making the money. >> reporter: for some time now lyft drivers have shared the same concerns as they don't see themselves profiting from today's public offering. >> we're the ones out there every single day taking the risk and driving these passengers around and making these executive million arroganairemi. it's time they heard our voice and know that we deserve a living wage. >> reporter: hearings are scheduled in april at city hall. i'm

lyft competition plays out?y: i told to travis long time ago when he was very angry, when i invested into lyft, you know, you need to at least have two players for this kind of totally new services, which is going to displace huge set of service. we're talking about converting part ownership to mobility as a service. this is big. and i don't think there will be just one company can do it. there needs to be at least two or even three companies who do it, competitively. otherwise, they will face many, many difficulties -- antitrust, push-back from the drivers. so i think it is healthy to have two companies competing each other. emily: is it healthy to have only one search engine or one social network or one e-commerce site in the united states? google and amazon and facebook have virtual monopolies. mickey: yeah, that's a problem. that's a problem. but, you know, people's behavior are also changing, right? for example, many people go to amazon instead of going to google. in u.s. in japan, they go to rakuten instea