Some environmentally focused investors are not ready to buy into Lyft Inc or Ube...
BOSTON/SAN FRANCISCO - Some environmentally focused investors are not ready to buy into Lyft Inc or Uber Technologies Inc, worried about the climate impact of this year’s two most closely watched initial public offerings.
Lyft began trading on Friday and its larger rival Uber will kick off its IPO this month, though neither has shown itself to be profitable and shares of Lyft sank below their initial price of $72 on Monday. “As far as I can tell, they’re actually putting more cars into the congested areas, and they’re pulling business out of the transit systems,” said Murray Rosenblith, portfolio manager of the New Alternatives Fund, which aims to make socially responsible investments.Joshua Brockwell, a director at Azzad Asset Management, which also factors environmental issues into investment decisions, said both companies also face the issue of drivers “deadheading,” or driving around in between fares.
Research shows mixed results. A 2017 University of California at Davis study found ride-hailing boosted use of commuter rail but pulled people away from buses and light rail. In addition people often used the apps to take trips they previously made by walking, biking, taking public transit or not taking at all.
“We are on a long path. We didn’t get to this level of congestion in our cities overnight,” Foxx said in an interview with Reuters.
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