Now that General Motors decided not to take over the company, Lyft is continuing to shop itself around for a buyout. There’s still trouble for the ride-sharing service, though, as none of the expected potential buyers submitted offers of their own. Lyft went knocking on every buyer’s door on the West Coast and no one answered.
Hit the break for details.
Any potential deal would have been worth around $9 billion, according to Recode; however, there wasn’t enough interest and Lyft lowered its target in individual negotiations.
Lyft’s management reached out to Alphabet, Apple, Amazon, and Microsoft to discuss deals but no bids were placed despite the asking price dropping down from $9 billion. Even General Motors, one of Lyft’s investors, passed on bidding to buy the company. Perhaps they view Uber as far too dominant in the ride-sharing space.
Although it hasn’t found a buyer, Lyft has little to worry about. Lyft is setting company records and has $1.4 billion in the bank. Those two things are good signs for the company and attractive pieces for potential buyers. A larger company like Alphabet or Apple could easily expand Lyft and give the service what it needs to better compete with Uber in the United States.
Where Lyft could run into a very hard time in competing with Uber is with Didi funneling $1 billion into that ride-sharing service. That investment could allow Uber to run continuous subsidies and promotion and thus put Lyft further behind. Lyft needs a bigger entity to step in as a parent company capable of pouring money into it.