Lyft receives $100 Million Funding from Carl Icahn

Lyft receives $100 Million Funding from Carl Icahn

Ride-hailing service Lyft announced about new funding worth $150 million. It also announced that billionaire investor Carl Icahn has invested $100 million in the company.

Jonathan Christodoro, one of the managing directors of Icahn, will become member of Lyft’s board of directors. Lyft President John Zimmer was of the view, “His recent success investing in the technology sector stems from a focus on companies that deliver incredible long-term value to their customers”.

Icahn affirmed that they are quite happy after investing in Lyft. He also affirmed that Lyft can be termed as a ‘tremendous bargain’ when compared with quite high valuation for rival Uber. Icahn thinks that ride-sharing will become one of the most important fundamental components of their company’s transportation infrastructure.

Icahn said that Lyft’s revenue growth is quite promising and the increasing urbanization in the next five to 10 years will make the company to maintain the trajectory. He also said that he is quite impressed with Lyft’s founders and management team.

Zimmer said that they are quite excited to partner with Carl at the time when Lyft is growing and they are working to bring changes in the US transportation infrastructure.

With this investment, LYft will get a chance to expand itself in the US. It will also be able to bring innovations in its existing products and improve its passenger and driver experiences.

As per Icahn, there is a room for more than one ridesharing company. He thinks that there is place for two. Though Lyft is witnessing growth, it is costing the company a lot of money. The company is spending more than 60% of its revenue on marketing. In December 2014, it has delivered 2.2 million rides.

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