Carl Icahn Invests $100 Million in Uber-Rival Lyft

Carl Icahn Invests $100 Million in Uber-Rival Lyft
Advertisement
In an uncharacteristic move, activist investor Carl Icahn's Icahn Enterprises LP made a $100 million (roughly Rs. 634 crores) investment in Lyft Inc., adding momentum to the ride-sharing company's rapid expansion but leaving its cash pile far behind rival Uber.

Icahn joins a long list of backers for the three-year old startup, including Andreessen Horowitz, New York-based technology hedge-fund Coatue Management, Chinese e-commerce giant Alibaba, and hedge fund Third Point Management.

Lyft, known for cars displaying a pink moustache logo, uses a smartphone app to match riders with paid drivers who use their own cars rather than livery vehicles, a service similar to one offered by Uber Technologies Inc.

But Uber, with a global presence, more diverse services including limousine-like rides, a global presence, and aspirations of expanding into logistics, is a much bigger company. It carries a $40 billion valuation compared to Lyft's $2.5 billion.

Lyft backers question whether Uber's broader mandate amounts to a valuation that is effectively 16 times greater than Uber. In many of its international markets, including China, Uber is facing tough competition from entrenched local players, while in others, such as Korea, it faces legal hurdles.

Uber fans say that building a global brand ultimately will make the company a stronger player, even if it faces setbacks in some markets along the way.

Technology has been a big part of Icahn's investment focus, with bets like Apple, Nextflix and eBay, but he generally does not invest in companies as young as Lyft, which was founded in 2012.

Last year, Icahn accused Andreessen Horowitz partner Marc Andreessen, who was a board member of eBay at the time, of having a conflicted role because of Andreessen's venture investments that competed with eBay.

On CNBC, Andreessen compared Icahn to a lying six-year-old. Now that he and Icahn will be co-investors in Lyft, he is making light of the past squabble.

"All's fair in love, war and ride-sharing," Andreessen said in a statement emailed to Reuters.

One of Icahn's managing directors, Jonathan Christodoro, will join Lyft's board, Lyft said in a statement on Friday.

The San Francisco-based company had raised $530 million in a funding round led by Japanese online retailer Rakuten Inc in March. The financing announced today is an extension of that March round, the company said.

Lyft is in 65 U.S. locations. Icahn was not immediately available for comment.

© Thomson Reuters 2015

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Apps, Carl Icahn, Lyft, Taxi App, Uber
Google's Self-Driving Cars to Hit Roads, With Steering Wheels
Amazon Deal a 'Catastrophic Mistake,' TV 'Very, Very Hard' Compared to Movies: Woody Allen
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »