Yep, there is a crossover between the Tweet thread and @Ian’s blog post. But I think it’s worth noting Ian’s post is a positive take on simplifying your tech stack to your teams strengths which is definitely working for Freetrade whilst the Twitter thread is perhaps critical on Lyfts ability to scale down their unit costs?
Re unit costs, although their server costs are big, that’s true of most data-intense online services, so I don’t think that’s the big question around unit costs. Obviously, it’d be way better if they could cut costs there but I reckon the economics of ride-sharing will be the harsher challenge than the economics of server provision.
Server costs would only be an inherent limiter if ride-sharing used an unsustainable amount of server power relative to other online businesses. Not sure this is the case.
I thought this an interesting analysis: Lyft - self-flagellation
“… Instead, Lyft thinks that it needs to win a suicidal race with Uber to go public when I continue to believe that it would be best served by staying private. There are three reasons for this view …”
UPDATE: Lyft sets price for IPO at $62 - $68
It’s gone up again: to $72.
and in other news
Is LYFT likely to feature on Freetrade any time soon?
We should have an update to share with you about our plans for new stocks later in the week.
Any new stock this Friday @alex.s? Love what you guys are doing by the way
We’ll update you later in the week.
I’d be a little nervous myself if tesla can do anything right under uber and lyfts nose.
Im sure I read that tesla will soon be leasing their cars so that at the end of the lease, they can provide the main fleet of vehicles for a self driving section of tesla
I read this thread looking for the point it all went wrong for Lyft and the company broke down and announced it had failed… Took me far to long to relise what was meant by Breakdown
Goes back to bed
Taken from today’s Finimize
> One for the cooler
Lyft shares are now down 16% on their IPO price – but concerned investors might do well to remember Facebook. Its shares fell 50% within a few weeks of going public in 2012, and early investor Peter Thiel sold 80% of his stake for around $400 million. Had he kept those shares, they’d be worth almost $4 billion today…
Yeah, I’m not buying it. At least FB has revenue streams not built on sand (and thats ignoring its diversification - Facebook is still borderline uninvestable atm given the issues plaguing them). Uber doesn’t even have the monopoly position it needs to justify anything close to its current valuation, and its getting worse every day.
The one stock I would love to short tbh.
While I agree with your sentiments, I think shorting a stock everyone is irrationally excited about is far too risky. I wouldn’t touch it with a barge pole in either direction