Famous Short-Seller Warns of Betting against Lyft Shares

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He observed that there are 13 million people between ages 15 to 17 years old in the United States. There will be more than 73 million who will turn 18 and use Lyft to get around over the next 17 years.

Second, Lyft has an upward sloping cohort curves. He compares the ride-sharing company to Amazon and Alibaba—it in “rare class of business.” According to him, “Businesses like Lyft and Amazon save life’s most precious commodity, time, and therefore have the greatest pricing power as well.” People use the service more frequently over time.

Third, the famous short-seller said the “trend is real…millennials are forgoing car ownership for ride sharing.” He added, “This is a way of life that is saving people time and ensuring safety. Ridesharing is not a fad… it is a megatrend.”

Fourth, Lyft’s valuation at $120 billion is massive discount compared to Uber, which is valued six times, despite the fact that it is rapidly taking market share from its rival.

Fifth, Mr. Left e noted Lyft’s “blue sky narratives.” It “can tell the story of autonomous driving and the future of margins.” He concluded, More importantly, what Citron believes will be the future of ride sharing is a subscription model that if executed properly is the ultimate blue sky.”