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00:00:00
%HESITATION I'm a little hesitant to purchase stock in the IPO price given that it is the same thing with uber is it companies that have never made money that's at least the view of John Kessler who's been a lift driver in San Francisco for over four years the ride hailing Aptos public on the stock market on Friday and drivers with over twenty thousand rights who seem to be like unicorns themselves get ten thousand dollars in bonuses for the occasion Kessler gets a thousand dollar bonus for shuttling over ten thousand rights which you can either pocket or used to buy lift shares at the listing price on Friday but Kessler says he's taken the cash how can a company with basically zero physical assets that is yet to turn a profit I have all this financial value in the marketplace investors don't seem to agree Reuters tech reporter heather Somerville enthusiasm as expected for lift I DO has been huge but what this and do the exam does not account for is that lift last year lost nine hundred eleven million dollars this makes it the most loss making company ever do you have an IPO that of course will be overshadowed by its rival uber who will go public in the coming weeks after having lost more than three billion dollars last year lift is seeking to fetch a valuation of over twenty four billion dollars uber is aiming for a hundred twenty billion dollars but even as the Silicon Valley start ups get to the stock market they're still struggling with fundamental business issues drivers with like uber has drivers who work as independent contractors there's been a lot of push back on that classification both from the California Supreme Court and other court cases as well as from the drivers themselves many of whom have sued saying that they should be treated as employees drivers have also been increasingly can , about lower pay as both companies cut drivers rates Kessler once a taxi driver says he sees the writing on the wall on the ranger businesses the regulation of what was regulated market and so historically that's always what happens is that it's a race to the bottom and that's not gonna stop until , %HESITATION %HESITATION falls out