In The Clouds: The 2019 IPO Market Is Dependent On AWS

Lyft (LYFT) filed for an IPO on March 1, with a valuation ranging between $20 and $25 billion. With a mission to "improve people's lives with the world's best transportation," the company wrote a $911M loss against $2.1B in revenue for 2018. Lyft operates in an interesting market, with both the company and their rival Uber (UBER), acting as disruptors in the traditional transportation market. Transportation as a service (TaaS) is expected to grow as a share of the overall transportation market, with almost complete dominance by 2030.

So what does Lyft's IPO have to do with Amazon (NASDAQ:AMZN)? TaaS relies on the cloud for operations. "Smart Commute" is becoming a segment of the transportation industry, with companies focused on car-sharing, last mile mobility, autonomous transport, etc. The opportunities are endless, but there are caveats for the growth of each of these startups, such as the reliance on data centers, which is often through cloud providers. In Lyft's case, they have entered an "all-in" agreement with AWS for the next three years.

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