In the battle to go public, Lyft might be winning.
The company’s initial public offering — with a target of more than $20 billion — is expected shortly, ahead of rival Uber. Key to wooing public investors, however, is showing potential for strong returns. That’s a problem because both ride-hailing giants spend more than they earn.
Their biggest expense? Driver salaries. In the first quarter of 2018, Uber raked in $11.3 billion in revenue, more than $8 billion of which was spent on paying drivers.