Reportedly, the car-sharing firm has been courted by several big-name firms including Apple, Google, Uber, Amazon, and even China’s Uber rival Didi Chuxing. But the most serious discussions happened at the table with General Motors, sources said.
G.M., which is currently one of Lyft’s largest investors, did not made a firm offer for the company. So, Lyft is still looking for a buyer. In the meantime, it will continue to run operations as an independent company, people familiar with the matter added.
San Francisco-based taxi-app firm’s recent efforts reveal how hard it is to survive on the ride-hailing market. Even though, such firms don’t need to have their own fleet of cars as drivers use their own vehicles and don’t have to reimburse gas and other expenses to their drivers, who work as contractors, the business is very capital-consuming.
Sources added that Lyft has yet to find a buyer because of the staggering cost. The company, which currently is valued at $5.5 billion, needs to find a buyer that can match that valuation and offer a big extra.
So far, both Uber and Lyft investors have poured billions of U.S. dollars in the businesses, and world expansion requires even more cash. For that matter, Uber decided to sell its Chinese operations to rival Didi as a battle for dominance with the latter would have been futile.
Yet, the Uber-Didi deal was not on Lyft’s liking, which had pledged an alliance with Didi to crush Uber on the Chinese market. It is now unclear whether Lyft will continue to do business with Didi, but if the two companies decide to part wise the move will cut deep into the U.S. firm’s growth prospects.
Partners interested in Lyft declined to comment on the negotiations.
Lyft’s initial goal was to implement a social ride-sharing idea in real-world contexts and decrease traffic congestion on America’s streets by reducing the number of cars. Other goals were to boost transportation’s efficiency across the country and provide a greener alternative to personal vehicles. These ideas were adopted by other similar services across the globe including Ola in India, BlaBlaCar in Europe, Didi in China, and Uber worldwide.
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