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And for Munster, founder of venture capital firm Loup Ventures, the difference is too great for two similar companies. He pointed out that 85% of their revenues overlapped, although he admitted that their long-term business models were different.
"I understand that there is an optional value that could partly explain this difference of 40%, but it just seems too big," he said. "I would recommend investors not to play the IPO."
Instead, he would wait for the valuation to stabilize at around $ 60 billion. And even then, be careful, says Munster.
"Think about this: do you have the appetite needed to cope with what's going to be a tough 2019, both for Lyft and Uber, while they invest in the future?" he said.
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Uber's mobile phone service is its core business, covering 63 countries and more than 700 cities. However, the company is also diversified in bike and scooter rentals, food delivery and freight. Uber develops technologies such as air taxis and driverless cars.
It's the autonomous technology that interests Munster, and that's why he loves the business fundamentals for Lyft and Uber in the long run. In three to five years, both companies will still be there, he predicted.
"I believe in the undeniable truth about autonomy," said Munster. "I understand that there is a huge investment phase here, but … I am able to see how much autonomy, in the longer term, can have. a positive impact. "
He believes that Lyft and Uber's "best way" for the future is to partner with the hardware manufacturing industry and use their brand for transportation and then achieve a profitable reduction. In this way, they should not invest much in assets.
If that is the future, said Munster, he would accept Lyft on Uber because the former has already adopted a partnership approach to autonomy.
– CNBC
Leslie Picker
contributed to this report.
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