The talks underline how hard it has become to operate in the competitive ride-hailing market.
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The most serious talks were reported to have taken place with United States auto maker General Motors, which invested $500 million in Lyft early this year as part of a vision to have self-driving cars at the ride-sharing service, but they did not result in a written offer.
According to the New York Times, Lyft has in recent months either held sales talks with or approached General Motors GM, Apple AAPL, Alphabet Inc. “Massachusetts residents have made it clear that they want ridesharing, and this new law ensures that transportation network companies like Lyft can continue to grow and expand in the Commonwealth”, he said in a statement. GOOGL, Amazon AMZN, Uber, and Didi Chuxing. GM never made a formal bid, people familiar said. GM’s aforementioned investment also resulted in the formation of a partnership between the two companies in developing an on-demand network of self-driving cars, a rapidly populating industry.
Lyft is not in danger of closing down and has a cash cushion of $1.4 billion, some of these people added, so the company will continue as an independent entity. This month, for example, Uber, which has raised far more money than Lyft, agreed to sell its Chinese subsidiary to Didi Chuxing, the biggest ride-hailing company in China.
Now that Uber has unloaded its China operations, a money pit by many estimates, it’s free to focus on its other priorities – one of which is winning in the U.S.
Uber Chief Executive Officer Travis Kalanick has said privately that he would not support a deal between Uber and Lyft because he believes it would face intense regulatory scrutiny, a source said.
Wheels managers said the private cars may carry an equal or greater number of people than the buses do at less cost to the public agency.
Fares would be limited to $3 for trips within West Dublin and $5 within the East Dublin project area – much less than the typical Uber or Lyft fare but more than the $2 Wheels bus fare, according to a report to the valley transit authority. Qatalyst declined to comment.
Lyft has been working with Qatalyst Partners to solicit interest from potential acquirers, people familiar with the matter said.
An investment from General Motors Co early this year valued Lyft at US$5.5 billion. Any sale would most likely have to fetch a premium from Lyft’s last valuation to be desirable to the company and its investors.
Lyft also struggled to find a buyer because of the challenging economics of the ride-hailing business.
A subsidy war would, however, be more expensive for Uber given its ride volume. Uber had previously considered purchasing Lyft as far back as 2014, and the two San Francisco companies have discussed the prospect informally, one of the people said.
That $400 million shrinks after marketing costs are factored in. “And in some cases”, The New York Times adds, “Lyft provides drivers with additional cash incentives simply to get out on the road, adding to its costs”.
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“Lyft is not profitable”, a personal familiar with the company’s finances told the publication.
