Lyft working w/ M&A firm / merger or bought out?

Jo3030

Well-Known Member
Moderator
Lyft is reportedly working with M&A firm Qatalyst Partners https://wp.me/p5hvhT-8lFh by @thekenyeung

Lyft could be looking to be acquired as reports have surfaced suggesting that the on-demand car service has enlisted the help of Qatalyst Partners, a firm known for facilitating mergers and acquisitions. The company declined to comment on the report.

Sources told The Wall Street Journal that Frank Quattrone, Qatalyst’s founder and executive chairman, has been in contact with various companies including large auto makers about taking a stake in Lyft. The company has raised more than $2 billion in funding and has been on a seemingly furious pace to take on Uber, which has a massive war chest at its disposal. It has been valued at $5.5 billion so any possible acquisition has left people to concede that Uber has won the ridesharing war.

Should Lyft be acquired and shuttered, this leaves Uber as the standalone service, especially after General Motors picked up what was left of Sidecar after it shut down in December. That company’s CEO Sunil Paul once wrote that Uber’s “win at any cost” model basically put Sidecar out of business and it’s possible that this could result in the same thing for Lyft.

In an effort to counter the growing influence of Uber, Lyft has formed an ridesharing alliance with other companies — kind of like a “the enemy of my enemy” situation. Last September, the company struck an accord with China’s Didi which has recently received backing from Apple, and also with GrabTaxi and Ola.





Some of the Lyft’s investors include a bevy of who’s who in the investment world, including Icahn Enterprises, Rakuten, Andreessen Horowitz, Founders Fund, Mayfield Fund, K9 Ventures, fbFund, and even General Motors which put in $500 million of a $1 billion round into the company.

What may be appealing to large auto makers is technology around self-driving cars that Lyft and may of these ridesharing services are working on. This is why General Motors made its investment according to its president Dan Ammann: “With GM and Lyft working together, we believe we can successfully implement this vision [of creating an integrated network of on-demand autonomous vehicles] more rapidly.”

If we had to think about acquisitions, it’s quite likely that General Motors could be one of the leading contenders to snatch up the company.

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sophiagrace

New Member
Lyft might not be doing well in their business, that's why it might be going for merger. Merger with the other company will help them to gain their popularity again and it'll also be beneficial in their budget system . Whosoever company is acquiring them, they will do their best to give the new recognition to the company with them.
 

uberdriverfornow

Well-Known Member
If they took a smaller percentage they would have more cars on the road which would cause the wait time to be less and would get more business. But first they have to rebrand away from that stupid mustache and pink color. They are alienating a lot of passengers with that tacky logo.
 

sophiagrace

New Member
Yes, they have to give new look to their vehicles. If they will follow this process , it will be really helpful for the growth of the company and will increase their business. Best option in this case is to have meeting with the head of the company, with which it has been merged. This will certainly bring positive result.
 
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