TODAY Lyft becomes the first fully Public corporation among the on-demand/Gig economy companies. In opening trades of the new IPO listed as LYFT on the NASDAQ it traded at $87.24, 20% higher than it’s IPO price.
For years Uber and Lyft have been kicking the can down the road on their IPO speculations, avoiding open information on the sustainability of a stock option.
All the while, there have been numerous finance and economics news outlets warning the public of the inherent risk in publicly trading a company that doesn’t own any real assets in the service provided and routinely loses money for incidental issues that should never exist for any service provider and routinely cost the public.
The stock market crash which lead into the American Great Depression was caused primarily by a lack of proper regulations and a stock market that was trading on extended credit.
Gig economy businesses moving to public trading threatens not just the US economy but the economy of the entire world.
Allowing the public trading of a company that operates with the same disregard for accountability and ethics as Lyft and Uber do only compounds the economic damage they can and will cause.