Why some green investors spend Uber and Lyft

BOSTON / SAN FRANCISCO (Reuters) – Environmentally savvy investors are not ready to buy shares in Lyft Inc or Uber Technologies Inc., worried about the climate implications of two of the most watched initial public offerings this year.

The two companies hope to keep motorists away from owning a car and promote shared and sustainable transportation services, among other ambitions that have already transformed traffic in major US cities.

Lyft began trading on Friday and its biggest rival Uber will launch its IPO this month, though neither has been profitable and Lyft's shares have fallen below their original price of $ 72. on Monday.

Academics and urban planners are still exploring whether companies will help reduce carbon emissions by making better use of existing fleets, or by increasing traffic congestion and by diverting drivers from trains and buses.

However, even though companies claim that traffic jams have many causes, including a growing urban population, some investors cite early indications that downhill driving technology is accelerating the number of cars, not the number.

"As far as I know, they are actually putting more cars in congested areas, and they are pulling companies out of public transit," said Murray Rosenblith, portfolio manager of the New Alternatives Fund, which aims to create a climate favorable social responsible investments.

"This is not an area where New Alternatives will get engaged," Rosenblith said.

Joshua Brockwell, director at Azzad Asset Management, who also considers environmental issues in investment decisions, said the two companies also face the issue of "dead end" drivers or the distance between two tariffs. .

While both also aim to reduce the number of pbadenger cars, he said, "this is not an ecological goal in itself. It's all the "kilometers traveled" and carbon emissions that matter. "

Representatives of several other renowned climate-minded investors said they did not buy IPOs or were not willing to weigh heavily, including Green Century funds, Boston Common Asset Management and Parnbadus Investments.

The research shows mixed results. A study conducted in 2017 by the University of California at Davis revealed that the use of remote monitoring stimulated the use of the commuter train, but kept people off buses and streetcars. In addition, users often used the apps to make trips they had previously done while walking, cycling, taking public transportation, or not taking anything at all.

A study by the San Francisco County Transportation Authority found that about half of the new traffic jams in San Francisco between 2010 and 2016 were due to driving problems. The researchers found that the average speed in the city was 20.9 miles at the end of the period, 3.1 miles at the time less fast than at the beginning. bit.ly/2EsU7cg

Motorists from Lyft and Uber often travel far to get to urban areas even before launching the application. It is common for drivers in the Central Valley of California to travel to San Francisco about 160 km (160 km) in search of cheaper rates.

Lyft executives, including Anthony Foxx, chief policy officer, said the company had taken other measures to combat congestion, such as the indication of the time of day. 39, bus arrival on its smartphone app and investment in bikes and scooters. Lyft also says it has spent millions of dollars on carbon offsets in 2018 and supports public transit infrastructure.

"We are on a long way. We did not experience this clutter problem overnight, "Foxx said in an interview with Reuters.

Uber has not put any leaders available to comment, but the company has made its own commitments to motorcycles, scooters and other sustainable development initiatives. In September, its CEO, Dara Khosrowshahi, pledged $ 10 million to explore ideas such as congestion pricing to speed up traffic.

For example, Uber and Lyft could help drivers buy more expensive electric cars, which cost less per kilometer. Seb Beloe, head of research at London-based WHEB Asset Management, another sustainable development investor, may speed up the transition to electricity, he said by e-mail.

But he avoided Lyft's IPO and worried about the service. Uber will decrease public transit. In the current state of things, "we think the case is not yet convincing" for companies, said Beloe.