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Car Services and Livery Cabs Green Initial Public Offerings John (1984- ) Logan Lyft Inc Zimmer

Lyft Sets $23 Billion Value as High-End Goal for I.P.O.

Mr. Green and Mr. Zimmer are set to reap hundreds of millions of dollars apiece as a result of the offering, the updated prospectus showed. Mr. Green’s stake would be worth about $569 million at the high end of the expected initial share price; Mr. Zimmer’s would be worth about $393 million.

Perhaps more important, the two men would retain control of Lyft, thanks to their ownership of a special class of shares that gives them 20 times the voting power of regular shareholders, despite each of them owning less than 3 percent of the company.

The arrangement is common in I.P.O.s by founder-led technology companies. Facebook and Snap, for example, ensured that their creators would keep an iron grip on their businesses. But the practice has been criticized by investor advocates who say that it creates a disadvantage for regular shareholders.

“This arrangement imposes a significant gap between those who exercise control over the company, and those who have economic exposure to the consequences of that control,” a coalition of institutional investors wrote in a letter last week to Lyft’s board that asked them to reconsider the arrangement.

In a video promoting the company’s roadshow that was also released on Monday, Mr. Green and Mr. Zimmer discussed their reasons for founding Lyft. The video showed Mr. Green, 35, riding a public bus in San Francisco and recalling a visit to Zimbabwe, where he drew inspiration from car pools he saw there. Mr. Zimmer, 34, reflected on his time in hotel management while wandering through a hotel parking garage.

In the video, the pair then meet in the back seat of a car, where they hinted at their advantages: Their company is still led by its founders, they said, and is solely focused on consumer transportation without side bets in food delivery and freight shipments. Their message was a dig at Uber, whose founders are no longer in executive roles at the company and which has expanded into food delivery with Uber Eats and freight shipments with Uber Freight.

“Car ownership in the U.S. is failing people,” Mr. Zimmer said in the video, suggesting that the transportation industry will eventually flip from car ownership to ride services like Lyft.

The price for Lyft’s shares is expected to be finalized on March 28, according to Ipreo, setting the company up to begin trading on the stock market on March 29.

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