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U.S. House to vote to reinstate net neutrality rules in April

FILE PHOTO: FILE PHOTO: Net neutrality advocates rally in front of the Federal Communications Commission in Washington
FILE PHOTO: Net neutrality advocates rally in front of the Federal Communications Commission (FCC) in Washington, U.S., December 13, 2017. REUTERS/Yuri Gripas/File Photo/File Photo

March 21, 2019

By David Shepardson

WASHINGTON (Reuters) – The Democratic-led U.S. House of Representatives will vote in April on a bill to reinstate landmark net neutrality rules repealed by the Federal Communications Commission under U.S. President Donald Trump.

House Majority Leader Steny Hoyer said in a letter to colleagues on Thursday seen by Reuters that lawmakers will vote on the bill dubbed the “Save the Internet Act” during the week of April 8.

The bill mirrors an effort last year to reverse the FCC’s December 2017 order that repealed rules approved in 2015 that

barred providers from blocking or slowing internet content or offering paid “fast lanes.”

The reversal of net neutrality rules was a win for internet providers like Comcast Corp, AT&T Inc and Verizon Communications Inc, but opposed by content and social media companies like Facebook Inc, Amazon.com Inc and Alphabet Inc.

The bill would repeal the order introduced by FCC Chairman Ajit Pai, bar the FCC from reinstating it or a substantially similar order and reinstate the 2015 net neutrality order. Republicans oppose reinstating the 2015 rules that grant the FCC sweeping authority to oversee the conduct of internet providers.

The Senate, which is controlled by Republicans, voted in May 2018 to reinstate the rules, but the House did not take up the issue before Congress adjourned last year. The White House opposes reinstating the net neutrality rules and it is not clear that proponents will be able to force a vote in the Senate.

(Reporting by David Shepardson; Editing by Tom Brown)

Source: OANN

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Fund managers skittish over Levi’s long-term growth prospects

FILE PHOTO: Levi Strauss & Co. CEO Chip Bergh and CFO Harmit Singh ring bell during IPO on floor of New York Stock Exchange (NYSE) in New York
FILE PHOTO: Levi Strauss & Co. CEO Chip Bergh rings a bell as CFO Harmit Singh looks on during the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 21, 2019. REUTERS/Lucas Jackson

March 21, 2019

By David Randall

NEW YORK (Reuters) – Levi Strauss & Co’s is betting it can convince investors there is still plenty of global growth left for the 165-year old company, but fund managers fret the iconic blue jeans maker’s stock may be too pricey to generate a decent return.

The San Francisco-based company returned to the public markets Thursday for the first time since it went private through a leveraged buyout in 1985 with a stock debut that sold $587 million worth of shares and gave it a market value of more than $8.7 billion .

In its prospectus, Levi’s said it plans to expand its women’s clothing line and grow in markets such as China, which represented just 3 percent of its net sales in 2018. Levi’s shares jumped more than 30 percent, which has mutual fund managers questioning whether a long-term investment in the denim company would be profitable.

“It’s a mature company that already has broad distribution and its customer base is shrinking because department stores are shrinking,” said Chris Terry, a portfolio manager at Dallas-based Hodges Capital Management.

Unlike companies like Under Armour Inc, whose shares are up nearly 22 percent year-to-date, Levi’s does not “have a ton of room to expand the brand” because it is already so well-known, Terry said.

The newly-public company would also face increased competition for fund managers’ attention if VF Corp spins off Western jeans brand Wrangler’s, as expected in the first half of 2019. Wrangler’s also sells apparel, including cowboy hats, shirts, and jackets.

“With Wrangler, you get Western wear, which is probably a larger secular growth opportunity” than denim alone and has only one other major competitor in Boot Barn Holdings Inc, Terry said. Year-to-date, shares of Boot Barn are up more than 56 percent.

Robert Bacarella, portfolio manager of the Monetta Fund, said concerns over Levi’s expansion plans outweigh the attractiveness of its brand name at its current price.

“We’re all sitting around here asking, ‘Where’s the growth?'” he said. “If they can come out with a plan to show that they can grow market share and not be as dependent on retail stores then it becomes a lot more interesting.”

With its long history, the company comes to the public markets at a time when the most anticipated initial public offerings are technology companies tied to the growth of the smartphone.

The average age of companies that have debuted so far in 2019 is four years, according to Kathleen Smith, principal at Renaissance Capital.

Fellow Bay Area companies Lyft, Uber Technologies Inc, AirBnb Inc and Pinterest, which are all expected to go public this year, have all been founded in the last 11 years.

Concerns about Levi’s growth rate would have been alleviated if its shares had remained near the $15 initial midpoint of the IPO pricing, or roughly seven and a half times its earnings before interest, taxes, and amortization, said Arun Daniel, a portfolio manager at J O Hambro Capital Management.

“They could see double-digit growth in the women’s category by taking share from competitors like Guess, which would be interesting because then you’re getting both the brand and growth and it becomes an attractive story for 3 to 5 years,” Daniel said. “But it all comes down to price.”

(Reporting by David Randall; Editing by Jennifer Ablan and Nick Carey)

Source: OANN

0 0

Watchdog Urges '20 Candidates to Release Tax Returns

Citizens for Responsibility and Ethics in Washington is urging all 2020 presidential candidates to release their tax returns for the past 10 years.

"Four years after Donald Trump declared his candidacy for president, we have still not seen his tax returns, despite reporting that suggests that those returns may show evidence of criminality and despite the fact that releasing them would be one of the best ways to illuminate potential conflicts of interest," the watchdog group said in a statement on its website.

CREW called on all presidential candidates to release their returns from at least the past 10 years "so that all Americans can compare what each candidate has released and read the returns themselves."

The group is tracking which 2020 candidates have released their returns.

CREW's call for tax returns was detailed in a report by The Hill. It noted so far only two Democrats have released at least 10 years of returns – Sens. Elizabeth Warren, D-Mass., and Kirsten Gillibrand, D-N.Y.

Meanwhile, The Hill reported House Democrats plan to try to get Trump's tax returns by requesting them from the Treasury Department.

Source: NewsMax

0 0

Watchdog Urges '20 Candidates to Release Tax Returns

Citizens for Responsibility and Ethics in Washington is urging all 2020 presidential candidates to release their tax returns for the past 10 years.

"Four years after Donald Trump declared his candidacy for president, we have still not seen his tax returns, despite reporting that suggests that those returns may show evidence of criminality and despite the fact that releasing them would be one of the best ways to illuminate potential conflicts of interest," the watchdog group said in a statement on its website.

CREW called on all presidential candidates to release their returns from at least the past 10 years "so that all Americans can compare what each candidate has released and read the returns themselves."

The group is tracking which 2020 candidates have released their returns.

CREW's call for tax returns was detailed in a report by The Hill. It noted so far only two Democrats have released at least 10 years of returns – Sens. Elizabeth Warren, D-Mass., and Kirsten Gillibrand, D-N.Y.

Meanwhile, The Hill reported House Democrats plan to try to get Trump's tax returns by requesting them from the Treasury Department.

Source: NewsMax

0 0

Amy Schumer Defends Decision To Talk About Husband’s Autism Spectrum Disorder After People Freak Out

Katie Jerkovich | Entertainment Reporter

Amy Schumer has defended her decision to talk about her husband Chris Fischer being diagnosed with autism spectrum disorder to the world during her stand-up “Growing” on Netflix.

“He [Fischer] was diagnosed as high functioning autism spectrum disorder,” the 37-year-old expectant comedian shared Wednesday during her appearance on “Late Night with Seth Myers.” (RELATED: TRAINWRECK–Tampa Crowd Eats Amy Schumer Alive For Going After Trump [VIDEO])

WATCH:

“That’s why we both wanted to talk about it because it’s been totally positive,” she added. “I think a lot people resist getting diagnosed and even some of their children because of the stigma that comes along with it.”(RELATED: Kate Hudson Will Raise Her Daughter ‘Genderless’: We Don’t Know ‘What She’s Going To Identify As’)

Schumer continued, “Like the tools we’ve been given have made his life so much better and our marriage and our life much more manageable. I just wanted to, you know, encourage people to not be afraid of that stigma.”

“I think there’s a lot of people with autism who go undiagnosed when I think their life could be better if they got those tools,” the “Trainwreck” star explained.

At one point, the comedian said she doesn’t want make it sound like she was “so nice” because she married “someone with autism.”

As previously reported, it comes on the heels of reports that people really freaked out, and called her out for having revealed that about her husband during her latest show that started streaming on the site Tuesday. Others came to the comedian’s defense and couldn’t figure out why people were upset and instead thanked her.

“I knew from the beginning that my husband’s brain was a little different than mine,” Schumer shared. “I have to start this over because I really want to get this right because I love him very much.”

“My husband was diagnosed with what used to be called Asperger’s,” she added. “He has autism spectrum disorder. He’s on the spectrum. And there were some signs early on.”

Schumer continued, “Once he was diagnosed, it dawned on me how funny it was, because all of the characteristics that make it clear that he’s on the spectrum are all of the reasons that I fell madly in love with him. That’s the truth.”

“He says whatever is on his mind,” the actress explained. “He keeps it so real. He doesn’t care about social norms or what you expect him to say or do.”

Source: The Daily Caller

0 0

Tennis: New French Open court unveiled as prize money increases

Inside view of a greenhouse at the botanical garden
Inside view of a greenhouse at the botanical garden "Jardin des Serres d'Auteuil" in Paris, France, March 21, 2019. REUTERS/Charles Platiau

March 21, 2019

PARIS (Reuters) – French Open organizers on Thursday unveiled the brand new Court Simonne Mathieu, hoping the 5,000-seat arena will boost the tournament’s atmosphere as they raised the prize money by more than eight percent.

Named after France’s second-most decorated female player, the arena is nestled among the area’s graceful 19-century greenhouses.

The prize money has been raised from 39.2 million euros ($44.48 million) up to 42.6 million, with the singles’ winners each earning a cheque of 2.3 million euros.

Tournament director Guy Forget doesn’t yet know which players will be the first to step onto the brand new court when the French Open starts on May 26, but he is certain the arena will be worthy of the occasion.

“Wimbledon, the U.S. and Australian Open spread out, they have facilities that are more modern, more comfortable, we were a bit lagging behind,” Forget said.

“Thanks to this court and the stadium that has been growing in size, we will be able to welcome all the fans in perfect conditions.”

Concern for the greenhouses was at the heart of the fierce opposition the French Tennis Federation faced when it announced the revamp, because the plan involved expanding the venue into the picturesque Serres d’Auteuil.

The famed botanical garden is home to 6,000 square meters of greenhouses built in 1898 and contain works by the sculptor Auguste Rodin, and the Roland Garros expansion has added more than 1,300 sqm of greenhouses to the existing ones.

The center court, Court Philippe Chatrier, has been partially restored before being equipped with a retractable roof for the 2020 edition.

(Reporting by Julien Pretot; Editing by Christian Radnedge)

Source: OANN

0 0

Union fund adviser CtW questions Lyft’s path to profitability ahead of IPO

The Lyft Driver Hub is seen in Los Angeles
The Lyft Driver Hub is seen in Los Angeles, California, U.S., March 20, 2019. REUTERS/Lucy Nicholson

March 21, 2019

By Joshua Franklin and Ross Kerber

NEW YORK/BOSTON (Reuters) – Union pension fund adviser CtW Investment Group said on Thursday Lyft Inc “faces an all-but-insurmountable barrier” to profitability due to issues with the ride-hailing company’s pricing strategy and new regulations driving costs higher.

The comments come four days into the roadshow for Lyft’s much-anticipated initial public offering (IPO), in which it is seeking to raise around $2 billion at a valuation of up to $23 billion.

Investor demand has been strong so far, with the IPO book oversubscribing after just two days, making it more likely that Lyft will hit or even exceed its valuation target, Reuters reported on Tuesday.

This is despite Lyft not having yet turned a profit, reporting a loss of $911 million in 2018, wider than its $688 million loss in 2017.

In a letter to potential investors in the IPO, CtW argued Lyft can only become profitable by reducing the share of revenue received by its drivers. CtW said Lyft’s larger rival Uber Technologies Inc pursued this strategy.

“Over the past three years, Lyft has mimicked Uber’s pay compression strategy, and IPO investors face the risk that the far smaller company will not be capable of sustaining low pay any longer than the market leader could,” CtW Research Director Richard Clayton wrote in the letter.

CtW said challenges for Lyft would also come from local politicians, including a move by New York City to set a minimum wage for drivers.

CtW works with union pension funds affiliated with Change to Win and which it says collectively manage $250 billion in assets.

Asked why CtW was commenting on Lyft ahead of the IPO, Clayton said in an emailed statement the group wants to make sure decision makers managing workers’ retirement savings take a careful look at Lyft before deciding whether to buy into the IPO. CtW also represents drivers unions which could be affected by the rise of ride-hailing services.

A spokesman for Lyft declined to comment.

In meetings with investors this week, Lyft executives said the company would be profitable much sooner were it not for investments in areas such as its scooter business, Reuters has reported. Lyft executives also said they expect the costs of processing transactions to come down.

Lyft is scheduled to price its IPO on March 28 and begin trading on the Nasdaq the following day.

(Reporting by Joshua Franklin in New York and Ross Kerber in Boston; Editing by Susan Thomas)

Source: OANN

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U.S. House to vote to reinstate net neutrality rules in April

FILE PHOTO: FILE PHOTO: Net neutrality advocates rally in front of the Federal Communications Commission in Washington
FILE PHOTO: Net neutrality advocates rally in front of the Federal Communications Commission (FCC) in Washington, U.S., December 13, 2017. REUTERS/Yuri Gripas/File Photo/File Photo

March 21, 2019

By David Shepardson

WASHINGTON (Reuters) – The Democratic-led U.S. House of Representatives will vote in April on a bill to reinstate landmark net neutrality rules repealed by the Federal Communications Commission under U.S. President Donald Trump.

House Majority Leader Steny Hoyer said in a letter to colleagues on Thursday seen by Reuters that lawmakers will vote on the bill dubbed the “Save the Internet Act” during the week of April 8.

The bill mirrors an effort last year to reverse the FCC’s December 2017 order that repealed rules approved in 2015 that

barred providers from blocking or slowing internet content or offering paid “fast lanes.”

The reversal of net neutrality rules was a win for internet providers like Comcast Corp, AT&T Inc and Verizon Communications Inc, but opposed by content and social media companies like Facebook Inc, Amazon.com Inc and Alphabet Inc.

The bill would repeal the order introduced by FCC Chairman Ajit Pai, bar the FCC from reinstating it or a substantially similar order and reinstate the 2015 net neutrality order. Republicans oppose reinstating the 2015 rules that grant the FCC sweeping authority to oversee the conduct of internet providers.

The Senate, which is controlled by Republicans, voted in May 2018 to reinstate the rules, but the House did not take up the issue before Congress adjourned last year. The White House opposes reinstating the net neutrality rules and it is not clear that proponents will be able to force a vote in the Senate.

(Reporting by David Shepardson; Editing by Tom Brown)

Source: OANN

0 0

Fund managers skittish over Levi’s long-term growth prospects

FILE PHOTO: Levi Strauss & Co. CEO Chip Bergh and CFO Harmit Singh ring bell during IPO on floor of New York Stock Exchange (NYSE) in New York
FILE PHOTO: Levi Strauss & Co. CEO Chip Bergh rings a bell as CFO Harmit Singh looks on during the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 21, 2019. REUTERS/Lucas Jackson

March 21, 2019

By David Randall

NEW YORK (Reuters) – Levi Strauss & Co’s is betting it can convince investors there is still plenty of global growth left for the 165-year old company, but fund managers fret the iconic blue jeans maker’s stock may be too pricey to generate a decent return.

The San Francisco-based company returned to the public markets Thursday for the first time since it went private through a leveraged buyout in 1985 with a stock debut that sold $587 million worth of shares and gave it a market value of more than $8.7 billion .

In its prospectus, Levi’s said it plans to expand its women’s clothing line and grow in markets such as China, which represented just 3 percent of its net sales in 2018. Levi’s shares jumped more than 30 percent, which has mutual fund managers questioning whether a long-term investment in the denim company would be profitable.

“It’s a mature company that already has broad distribution and its customer base is shrinking because department stores are shrinking,” said Chris Terry, a portfolio manager at Dallas-based Hodges Capital Management.

Unlike companies like Under Armour Inc, whose shares are up nearly 22 percent year-to-date, Levi’s does not “have a ton of room to expand the brand” because it is already so well-known, Terry said.

The newly-public company would also face increased competition for fund managers’ attention if VF Corp spins off Western jeans brand Wrangler’s, as expected in the first half of 2019. Wrangler’s also sells apparel, including cowboy hats, shirts, and jackets.

“With Wrangler, you get Western wear, which is probably a larger secular growth opportunity” than denim alone and has only one other major competitor in Boot Barn Holdings Inc, Terry said. Year-to-date, shares of Boot Barn are up more than 56 percent.

Robert Bacarella, portfolio manager of the Monetta Fund, said concerns over Levi’s expansion plans outweigh the attractiveness of its brand name at its current price.

“We’re all sitting around here asking, ‘Where’s the growth?'” he said. “If they can come out with a plan to show that they can grow market share and not be as dependent on retail stores then it becomes a lot more interesting.”

With its long history, the company comes to the public markets at a time when the most anticipated initial public offerings are technology companies tied to the growth of the smartphone.

The average age of companies that have debuted so far in 2019 is four years, according to Kathleen Smith, principal at Renaissance Capital.

Fellow Bay Area companies Lyft, Uber Technologies Inc, AirBnb Inc and Pinterest, which are all expected to go public this year, have all been founded in the last 11 years.

Concerns about Levi’s growth rate would have been alleviated if its shares had remained near the $15 initial midpoint of the IPO pricing, or roughly seven and a half times its earnings before interest, taxes, and amortization, said Arun Daniel, a portfolio manager at J O Hambro Capital Management.

“They could see double-digit growth in the women’s category by taking share from competitors like Guess, which would be interesting because then you’re getting both the brand and growth and it becomes an attractive story for 3 to 5 years,” Daniel said. “But it all comes down to price.”

(Reporting by David Randall; Editing by Jennifer Ablan and Nick Carey)

Source: OANN

0 0

Watchdog Urges '20 Candidates to Release Tax Returns

Citizens for Responsibility and Ethics in Washington is urging all 2020 presidential candidates to release their tax returns for the past 10 years.

"Four years after Donald Trump declared his candidacy for president, we have still not seen his tax returns, despite reporting that suggests that those returns may show evidence of criminality and despite the fact that releasing them would be one of the best ways to illuminate potential conflicts of interest," the watchdog group said in a statement on its website.

CREW called on all presidential candidates to release their returns from at least the past 10 years "so that all Americans can compare what each candidate has released and read the returns themselves."

The group is tracking which 2020 candidates have released their returns.

CREW's call for tax returns was detailed in a report by The Hill. It noted so far only two Democrats have released at least 10 years of returns – Sens. Elizabeth Warren, D-Mass., and Kirsten Gillibrand, D-N.Y.

Meanwhile, The Hill reported House Democrats plan to try to get Trump's tax returns by requesting them from the Treasury Department.

Source: NewsMax

0 0

Watchdog Urges '20 Candidates to Release Tax Returns

Citizens for Responsibility and Ethics in Washington is urging all 2020 presidential candidates to release their tax returns for the past 10 years.

"Four years after Donald Trump declared his candidacy for president, we have still not seen his tax returns, despite reporting that suggests that those returns may show evidence of criminality and despite the fact that releasing them would be one of the best ways to illuminate potential conflicts of interest," the watchdog group said in a statement on its website.

CREW called on all presidential candidates to release their returns from at least the past 10 years "so that all Americans can compare what each candidate has released and read the returns themselves."

The group is tracking which 2020 candidates have released their returns.

CREW's call for tax returns was detailed in a report by The Hill. It noted so far only two Democrats have released at least 10 years of returns – Sens. Elizabeth Warren, D-Mass., and Kirsten Gillibrand, D-N.Y.

Meanwhile, The Hill reported House Democrats plan to try to get Trump's tax returns by requesting them from the Treasury Department.

Source: NewsMax

0 0

Amy Schumer Defends Decision To Talk About Husband’s Autism Spectrum Disorder After People Freak Out

Katie Jerkovich | Entertainment Reporter

Amy Schumer has defended her decision to talk about her husband Chris Fischer being diagnosed with autism spectrum disorder to the world during her stand-up “Growing” on Netflix.

“He [Fischer] was diagnosed as high functioning autism spectrum disorder,” the 37-year-old expectant comedian shared Wednesday during her appearance on “Late Night with Seth Myers.” (RELATED: TRAINWRECK–Tampa Crowd Eats Amy Schumer Alive For Going After Trump [VIDEO])

WATCH:

“That’s why we both wanted to talk about it because it’s been totally positive,” she added. “I think a lot people resist getting diagnosed and even some of their children because of the stigma that comes along with it.”(RELATED: Kate Hudson Will Raise Her Daughter ‘Genderless’: We Don’t Know ‘What She’s Going To Identify As’)

Schumer continued, “Like the tools we’ve been given have made his life so much better and our marriage and our life much more manageable. I just wanted to, you know, encourage people to not be afraid of that stigma.”

“I think there’s a lot of people with autism who go undiagnosed when I think their life could be better if they got those tools,” the “Trainwreck” star explained.

At one point, the comedian said she doesn’t want make it sound like she was “so nice” because she married “someone with autism.”

As previously reported, it comes on the heels of reports that people really freaked out, and called her out for having revealed that about her husband during her latest show that started streaming on the site Tuesday. Others came to the comedian’s defense and couldn’t figure out why people were upset and instead thanked her.

“I knew from the beginning that my husband’s brain was a little different than mine,” Schumer shared. “I have to start this over because I really want to get this right because I love him very much.”

“My husband was diagnosed with what used to be called Asperger’s,” she added. “He has autism spectrum disorder. He’s on the spectrum. And there were some signs early on.”

Schumer continued, “Once he was diagnosed, it dawned on me how funny it was, because all of the characteristics that make it clear that he’s on the spectrum are all of the reasons that I fell madly in love with him. That’s the truth.”

“He says whatever is on his mind,” the actress explained. “He keeps it so real. He doesn’t care about social norms or what you expect him to say or do.”

Source: The Daily Caller

0 0

Tennis: New French Open court unveiled as prize money increases

Inside view of a greenhouse at the botanical garden
Inside view of a greenhouse at the botanical garden "Jardin des Serres d'Auteuil" in Paris, France, March 21, 2019. REUTERS/Charles Platiau

March 21, 2019

PARIS (Reuters) – French Open organizers on Thursday unveiled the brand new Court Simonne Mathieu, hoping the 5,000-seat arena will boost the tournament’s atmosphere as they raised the prize money by more than eight percent.

Named after France’s second-most decorated female player, the arena is nestled among the area’s graceful 19-century greenhouses.

The prize money has been raised from 39.2 million euros ($44.48 million) up to 42.6 million, with the singles’ winners each earning a cheque of 2.3 million euros.

Tournament director Guy Forget doesn’t yet know which players will be the first to step onto the brand new court when the French Open starts on May 26, but he is certain the arena will be worthy of the occasion.

“Wimbledon, the U.S. and Australian Open spread out, they have facilities that are more modern, more comfortable, we were a bit lagging behind,” Forget said.

“Thanks to this court and the stadium that has been growing in size, we will be able to welcome all the fans in perfect conditions.”

Concern for the greenhouses was at the heart of the fierce opposition the French Tennis Federation faced when it announced the revamp, because the plan involved expanding the venue into the picturesque Serres d’Auteuil.

The famed botanical garden is home to 6,000 square meters of greenhouses built in 1898 and contain works by the sculptor Auguste Rodin, and the Roland Garros expansion has added more than 1,300 sqm of greenhouses to the existing ones.

The center court, Court Philippe Chatrier, has been partially restored before being equipped with a retractable roof for the 2020 edition.

(Reporting by Julien Pretot; Editing by Christian Radnedge)

Source: OANN

0 0

Union fund adviser CtW questions Lyft’s path to profitability ahead of IPO

The Lyft Driver Hub is seen in Los Angeles
The Lyft Driver Hub is seen in Los Angeles, California, U.S., March 20, 2019. REUTERS/Lucy Nicholson

March 21, 2019

By Joshua Franklin and Ross Kerber

NEW YORK/BOSTON (Reuters) – Union pension fund adviser CtW Investment Group said on Thursday Lyft Inc “faces an all-but-insurmountable barrier” to profitability due to issues with the ride-hailing company’s pricing strategy and new regulations driving costs higher.

The comments come four days into the roadshow for Lyft’s much-anticipated initial public offering (IPO), in which it is seeking to raise around $2 billion at a valuation of up to $23 billion.

Investor demand has been strong so far, with the IPO book oversubscribing after just two days, making it more likely that Lyft will hit or even exceed its valuation target, Reuters reported on Tuesday.

This is despite Lyft not having yet turned a profit, reporting a loss of $911 million in 2018, wider than its $688 million loss in 2017.

In a letter to potential investors in the IPO, CtW argued Lyft can only become profitable by reducing the share of revenue received by its drivers. CtW said Lyft’s larger rival Uber Technologies Inc pursued this strategy.

“Over the past three years, Lyft has mimicked Uber’s pay compression strategy, and IPO investors face the risk that the far smaller company will not be capable of sustaining low pay any longer than the market leader could,” CtW Research Director Richard Clayton wrote in the letter.

CtW said challenges for Lyft would also come from local politicians, including a move by New York City to set a minimum wage for drivers.

CtW works with union pension funds affiliated with Change to Win and which it says collectively manage $250 billion in assets.

Asked why CtW was commenting on Lyft ahead of the IPO, Clayton said in an emailed statement the group wants to make sure decision makers managing workers’ retirement savings take a careful look at Lyft before deciding whether to buy into the IPO. CtW also represents drivers unions which could be affected by the rise of ride-hailing services.

A spokesman for Lyft declined to comment.

In meetings with investors this week, Lyft executives said the company would be profitable much sooner were it not for investments in areas such as its scooter business, Reuters has reported. Lyft executives also said they expect the costs of processing transactions to come down.

Lyft is scheduled to price its IPO on March 28 and begin trading on the Nasdaq the following day.

(Reporting by Joshua Franklin in New York and Ross Kerber in Boston; Editing by Susan Thomas)

Source: OANN

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