While Lyft might not have even a tenth of valuation of its rival Uber, but it still continues to attract heavy investment as it prepares its war chest to take on Uber. The company, continuing on its previous $350 Million round, has now raised an additional $150 Million, with an unusual investment from Carl C. Icahn’s Carl C. Icahn Enterprisers. Icahn invested $100 Million in this round.
The investment from Icahn is unusual, considering he majorly invests in large publicly traded companies. As part of the investment, one of Icahn’s Managing Directors, Jonathan Christodoro, will join Lyft’s Board of Directors.
Mr. Icahn said,
We are very happy to be investing in Lyft. I believe that ridesharing 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
He further added that he has been “very impressed” with Lyft’s founders and management team, and he believes that they are “well-suited” to take advantage of this opportunity.
He had earlier told the Wall Street Journal that Lyft’s Valuation is what got him interested and that the $2.5 Billion valuation was a “bargain” for Uber’s $41 Billion (expected to reach $50 Billion soon).
John Zimmer, President of Lyft, said,
Carl Icahn’s record as an investor is unparalleled. His recent success investing in the technology sector stems from a focus on companies that deliver incredible long-term value to their customers, such as Apple, Netflix and eBay/PayPal. 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.
The current round would take Lyft’s original fund-raising to over $530 Million, putting it in the league of high valued, heavily funded startups. This $530 Million round takes Lyft’s total funding to over a Billion, even though it still is just a fifth of Uber’s $5 Billion till date.