Carl Icahn has invested $US100 million in Lyft, a company that competes with ride-hailing service Uber. The company raised $US150 million this time around at a $US2.5 billion valuation.
The remaining $US50 million comes from Icahn’s long-time rival, Marc Andreessen and his firm, Andreessen Horowitz.
In a spar over eBay, Icahn once said “Andreessen, he’s screwed more people than Casanova, for Christ’s sakes.”
Icahn believes “ridesharing is poised to become a fundamental component of our transportation infrastructure.”
The new investment in the company is an extension of Lyft’s $US530 million Series E round that it raised in March, led by Japanese e-commerce company Rakuten.
Here’s the press release form the company:
Lyft, Inc. (“Lyft”) today announced that it has raised an additional $US150 million, led by an investment of $US100 million from Icahn Enterprises L.P. (“Icahn”), the diversified holding company controlled by Carl C. Icahn. As part of the investment, one of Icahn’s Managing Directors, Jonathan Christodoro, will join Lyft’s Board of Directors.
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. With this additional investment, we remain focused on deepening our U.S. footprint, continuing to lead with product innovation and providing the best possible experience for drivers and passengers.”
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 urbanisation 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.”