Taxi-hailing company Gett, which anticipates becoming profitable later this year, is planning an initial public offering to cash in on appetite for listings of ride-booking companies.
The company, which offers rides through established taxi operators rather than the minicab models adopted by larger rivals such as Uber and Lyft, is considering listing later this year on either the London Stock Exchange or in Israel, founder and chief executive Dave Waiser told the Financial Times.
More than half of Gett’s revenues come from business accounts, with some 20,000 companies using the business as their taxi-booking service.
Mr Waiser said the business considered listing after seeing that ride-booking rival Lyft intended to float despite deepening losses.
“We will see how Lyft goes, we believe there’s a lot of public capital waiting for the [technology] darlings [Uber and Lyft], but we also believe that our business model makes sense,” he said.
Gett links users with established taxi operators such as black cabs in London or yellow taxis in New York, allowing it to plug into existing taxi networks with accredited drivers, while also allowing the company to place itself as a more upmarket service.
The group, which is a fraction of the size of Lyft, has not published financial figures, but expects to become profitable later this year, and said it currently booked “hundreds of millions” of pounds in revenues.
Lyft recorded $2bn in annual revenues last year from ride-hailing in 300 markets in the US and Canada, but posted a net loss of $911.3m.
Gett’s corporate sales, which account for more than half its revenues and a higher share of profitability, rose 54 per cent last year. A monthly profit chart shows that the global business lost $3.5m during December, but expects to deliver more than $1m in profit by this December.
The company’s European business, which is more mature, made a loss of $2.4m but is projected to record a higher profit by the end of the year. “December will be positive, but the break-even will happen earlier than that,” Mr Waiser said.
Gett wants to use funds from the IPO to invest in its existing networks.
Uber and Lyft are also both expected to float this year, despite their core operations losing money.
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