Uber and Lyft IPOs will make a lot of people rich. But what about the drivers?

[NelsonG]

If ride-hailing app Uber goes public next year its valuation could hit $120 billion. Its smaller rival Lyft: $30 billion. But will drivers benefit?

Flush with cash despite years of never earning a profit, the companies will be able to do things like finally pay out employees and acquire other businesses. As the hot new IPOs, they’ll also get good publicity, which can raise the visibility of Lyft and help Uber — with new CEO Dara Khosrowshahi at the helm — gloss over past reports of harassment in the workplace, gender discrimination, and cut-throat tactics.

Outside of Uber and Lyft, would-be investors are champing at the bit. "There's so much pent-up demand to invest in the ride-sharing businesses," financial consultant Christopher Clapp at MorganFranklin said. They'll be the first major companies in the sharing economy to go public, and what happens could affect the industry's next round of IPOs, which will most likely include Airbnb. Read more...

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