First Free Story (1 of 3)Join Skift Pro
Lyft Inc. is worth more than its recent $2 billion valuation, based on the $50 billion value of larger car- hailing rival Uber Technologies Inc., investor Carl Icahn said, after he led a fundraising round at Lyft last week.
“If Uber is worth $50 billion, Lyft is worth a lot more than $2 billion,” Icahn said today in a phone interview with CNBC. “Under the right circumstances, if they keep growing the way they would, I would certainly be very interested in putting more money in and I’m sure I’m not the only one.”
Lyft’s latest fundraising valued the startup at about $2.5 billion. Both of the mobile car-booking applications are risky investments, but Uber executives “don’t have a patent” on ride-sharing, and the only reason Lyft wouldn’t be able to compete is if it couldn’t continue to raise capital, Icahn said.
“The investors that have put in money I think have answered that question,” Icahn said. “Why can’t there be two competitors here?”
San Francisco-based Lyft last week raised $150 million, led by an investment of $100 million from billionaire Icahn. The round will help Lyft in its battle for market share with Uber. A Lyft presentation to investors that was obtained by Bloomberg News in April showed mounting costs for marketing the service. Lyft projects a 512 percent jump in net revenue this year to $796 million.
–With assistance from Leslie Picker in New York and Eric Newcomer in San Francisco.
This article was written by Beth Jinks from Bloomberg and was legally licensed through the NewsCred publisher network.