• Triton

Lyft: Excitement with the Deal, Problems with the Fundamentals

In an appearance today on Bloomberg TV, Triton's Rett Wallace explained how Lyft's first day of trading, with the initial 20% pop preceding a consistent sell-off, demonstrated the characteristics of a company for which investors had lukewarm feelings. "You can be very bullish on the long-term theme of ride sharing and still have questions about the value and the fundamentals here," said Wallace. "Lyft spends $2 per ride just in marketing and incentives, and another $2 in insurance, and another $0.50 in operations. So you're at $4.50 per ride already, and you have to spend to grow. So is it going to be growth, or is it going to be profitability? We're already at the point where it is going to have to be a choice." Excerpt of the interview on Bloomberg TV - HERE