Shares of ride-hailing app Lyft dropped 19.55% in the past week as competition for investors money increases. The Lyft stock closed with a drop of about $3 billion in market capitalisation. Lyft shares started the week priced at $74.45 from its 5th April close, which was still above its IPO launch price of $72. However, since Uber have released details of their market launch, shares traded at $59.90 on Friday’s close according to CNBC.
The two American rivals will now be soon pitching for shareholder cash and some experts say that the first to float, Lyft in this case, usually gains a boost by benefitting from “pent-up demand”.
There he been expectations from Uber to achieve a $120 billion valuation despite the global minicab firm never having made a profit.