Lyft co-founders Logan Green and John Zimmer are inching closer to becoming members of the Billionaires club as investor demand for Lyft Inc. stock has boosted the value of their combined stake to as much as $1.4 billion.
Shares of the ride-hailing company jumped about 20% on Friday’s initial trading to $85.48 as of noon in New York. The company priced its shares at $72 on Thursday, from a previous range of $62 to $68. The increase gave a shot in the arm to the value of Logan Green’s and John Zimmer’s stake to roughly $800 million and $600 million respectively, according to calculations by BillionaireMonitor.com.
Both Logan Green and John Zimmer own less than 5% of Lyft’s shares combined, mostly because their stakes have been diluted from large funding rounds in the past on Lyft’s path to raising over $5 billion. Even though the co-founders do not own the biggest economic stakes in the ride-hailing company, they will exercise a lot of control through the class B shares they both own. According to a report by Forbes, the class B shares they own each has the voting rights of 20 ordinary shares. This means that the pair will hold combined voting power of about 49 percent in Lyft after the Initial Public Offering.
Some of Lyft’s biggest shareholders include early backers such as Japanese billionaire Hiroshi “Mickey” Mikitani’s e-commerce company Rakuten Inc and General Motors Co. The two companies own $2.7 billion and $1.6 billion respectively of the class A shares.
Logan Green and John Zimmer founded ride-hailing company Lyft in 2012. Lyft, which is based in San Francisco, California, is the second largest ride-hailing company in the U.S after Uber. The company operates in approximately 300 U.S. cities, and provides over 1 million rides per day.