Carl Icahn is betting $100 million that ride-sharing startup Lyft Inc. can keep growing in a world increasingly dominated by its larger rival, Uber Technologies Inc.
The activist billionaire on Friday said he is backing Lyft because he considers its valuation of $2.5 billion a “tremendous bargain”
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The company is now reportedly worth $2.5 billion, compared with Uber, most recently valued by investors at $41 billion. The activist billionaire said “We are very happy to be investing in Lyft. I believe that ride sharing is poised to become a fundamental component of our transportation infrastructure. The Company’s revenue growth to date has been extremely compelling, and increasing urbanization over the next 5 to 10 years should enable the Company to maintain that trajectory. Additionally, I’ve been very impressed with Lyft’s founders and management team, and I believe they are well-suited to take advantage of this opportunity and to make Lyft an extremely successful company, ” said Carl Icahn.
In March, lyft announced a $530 million Series E investment led by Rakuten. “Today, we’re thrilled to share that we have raised an additional $150 million, led by an investment of $100 million from Carl Icahn, one of the most successful investors in history”, lift says in the blog.
“Icahn’s record as an investor is unparalleled, and he will be a big champion for Lyft as we continue to scale and finance future growth. Most recently, he has had tremendous success investing in the tech sector with a focus on companies that deliver incredible long-term value to their customers, such as with Apple and Netflix. We’re thrilled to partner with Carl during this exciting period in Lyft’s growth as we work to rebuild the U.S. transportation infrastructure and reconnect local communities”, they said.
