Lyft Inc. is nearing a decision on its initial public offering advisory firm in the ride-hailing service's first major step toward a public listing, Reuters reported.

Lyft, which is the second-largest ride service company in the U.S., is preparing for a public listing as its main rival, Uber, wades through a slew of scandals that resulted in founder Travis Kalanick's exit from the company this summer. His replacement as CEO, Dara Khosrowshahi, said Uber will go public in the next 18 to 36 months.

Lyft might have trouble finding an underwriting firm to take it public, as many top investment banks including Goldman Sachs Group Inc. (GS - Get Report) and Morgan Stanley (MS - Get Report) are already investors in Uber. And a bank that chooses to take Lyft public might miss out on a much larger Uber IPO down the road.

Going public would allow Lyft access to more capital beyond just private investments. Following a round of funding in April, Lyft was valued around $7.5 billion. Uber was most recently valued at $68 billion.

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