Lyft Founders Conspire to Take Control of $7.5 Billion Uber Competitor
The two founders of car-hailing giant and Uber competitor Lyft are reportedly working on keeping control of the company after its planned move to go public in 2019. | Source: Shutterstock
The founders of Lyft, John Zimmer and Logan Green, are working on a plan to retain control of the company after it goes public. They will do this by creating a special class of stock that gives the holders “super voting” rights. The votes will allow the CEO and President to have fiat control. Exact details haven’t yet been made public.
Lyft, whose value jumped to $7.5 billion after raising an additional $600 million last June, has raised $4.5 billion since its founding. All that fundraising has left Zimmer and Green with an actual stake of less than 10% in the company.
Class “F” Supervoting Shares
Supervoting is a growing trend in Silicon Valley start-ups. It enables the founders to retain control of their companies even after “going public.”
Formerly, the decisions and actions of the companies were subject to some form of democratic control. Notably, the world’s biggest tech company, Amazon.com, has no such structure. Billionaire Jeff Bezos retains great voting power by owning a large amount of stock. His actual voting power outsizes most other common holders. However, institutional funds hold more than half the company’s shares.
Lyft co-founder John Zimmer is looking to retain control of the company after its planned move to go public this year.