Sharing economy unicorn Lyft has turned to the public markets for growth capital. Its initial public offering is scheduled to price next week.
As long as Lyft was a private company, Lyft investors were limited to institutional investors, qualified individual investors, and employees. Following the IPO, the list of potential investors will broaden to include retail investors and a range of exchange-traded funds and mutual funds with environmental, social, or governance themes. Accordingly, a wide range of investors will be able to purchase Lyft stock, which will trade on the Nasdaq, due to its strong overall ESG profile.
The question of whether Lyft drivers are independent contractors or employees has parallels with the question of whether FedEx drivers are independent contractors or employees. Last November, two Lyft drivers, one in Massachusetts and one in California, filed proposed class action lawsuits, alleging the company inadequately paid them and misclassified them as contractors.
I've spent 18 years engaging with investors and social enterprises on sustainable investing. Join me at https://www.eiseverywhere.com/ehome/350098Bhakti Mirchandani is a Managing Director at a think tank. Previously, Bhakti was an investment management strategist at leading structured credit firm One William Stree...