Posted 05/20/2015 at 8:44 AM
Posted 2 years ago
The billionaire investor with an activist’s spirit, Carl Icahn is betting that the on-demand car service industry could use a bit of a jolt.
This much was certain after news broke of his $100 million dollar investment in Lyft recently.
Lyft has gained prominence thanks to its highly courteous drivers and a whimsical appeal embodied in a giant pink mustache that used to be on the front of its cars, but now reside on the dashboard in a more reasonable size.
It still is locked in a tight battle with Uber, who is the current industry standard bearer.
Icahn’s investment, valued to possibly add to the $2.5 billion valuation of Lyft, falls in line with his own recent position that views ride-sharing as the future in a fast-growing global marketplace.
In remarks made to reporters with the Wall Street Journal, he viewed the investment thusly: “if you look at the way the market evaluates Uber and then look at the valuation of Lyft — Lyft is a tremendous bargain. There is room for two.”
The news comes after Lyft raised $350 million dollars in investments from Japanese e-commerce company Rakuten, Inc.
Icahn’s association with Lyft is yet another prime chess move in a shifting industry that is seeing both Uber and Lyft evolve beyond ridesharing into retail delivery services.