• Gideon Ozik

Ridesharing is going public



Introduction


After months of speculation, the highly anticipated IPO of Lyft was issued on Nasdaq on March 29. According to Reuters, Uber IPO is expected to take place this week, which, at 100B+ valuation, would make it the largest IPO since Alibaba’s offering in 2014 and one of the largest in history. As private companies are not subject to the same disclosure requirements as public companies, it is hard for investors to gather historical time-series information on private firms or for that matter, recently turned public firms. By analyzing five years of media coverage pertaining to the two leading companies in the ridesharing industry, this report demonstrates the manner by which media information could fill in the information gap.


Method & Data


We use our proprietary thematic analysis approach on a firm level media reservoir to identify media articles covering either Uber or Lyft and quantify their respective media coverage intensity and excess sentiment since 2015. We also use the recent period in which Lyft has been traded publicly to assess the impact of sentiment on price. The analysis is based on the MKT corporate-media reservoir, which includes approx 28 million articles collected from 75K+ media sources pertaining to US and international companies.


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