Lyft tried to get Apple, Microsoft and Alphabet to buy the company for $9 billion

Lyft tried to get Apple, Microsoft and Alphabet to buy the company for $9 billion
Ride-sharing service Lyft was reportedly seeking a deep-pocketed tech outfit to buy out the company. According to a report published this weekend, Lyft tried to get one A-lister like Apple, Alphabet or Microsoft to pony up as much as $9 billion to purchase it. One report states that Lyft even approached its chief rival Uber about buying the company.

Lyft did not not get any of its potential suitors to bite, and was forced to lower its asking price during talks. Conversations with automobile manufacturer General Motors also failed to solicit a bid for Lyft, which was valued at $5.5 billion during its most recent round of funding.

The second largest company in the ride-sharing industry behind Uber, Lyft is experiencing rapid growth. Last year, it grew its revenues by over 600%. At its peak, Lyft provided 14 million rides in a month compared to the 62 million rides that Uber chalked up during its peak month.

The question is whether Lyft has enough money to stay in business until it can start turning a profit. It currently is drawing interest on the $1.4 billion it has in the bank, which one source says is enough to keep Lyft running until it starts turning a profit. But with Uber expected to focus on the U.S. now that it has pulled out of China, Lyft is staring at tough competition in front of it. And if Uber goes public in 2017 in what could be the largest IPO ever, Lyft is going to have to face a much larger competitor that will be flush with cash.

Whatever Lyft does to strengthen its financial and competitive position, it appears that the tech industry will not be involved.

source: Recode

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13 Comments

1. Martineverest

Posts: 521; Member since: Oct 27, 2015

microsoft is not interested in motors.they just want to be a software company.

2. lyndon420

Posts: 6861; Member since: Jul 11, 2012

Their biggest competitors have a big stake in the auto industry. I wouldn't be surprised if ms has an interest in the UI of autonomous vehicles, with something like Hololens etc.

7. Finalflash

Posts: 4063; Member since: Jul 23, 2013

No, MS just spent 26 billion on LinkedIn, they're showing their focus is software services and social networking and big data. No more hardware under Nadella, which is great because they were getting nowhere in hardware.

8. lyndon420

Posts: 6861; Member since: Jul 11, 2012

I agree that their main focus is software, but with Hololens I just envision that will be their hardware focus because they do have some cool tech going on in there which could operate seperately and/or in sync with the vehicles OS. Skype and LinkedIn could both be built upon once autonomous vehicles go mainstream... people will want to do more than just text when their vehicles are driving for them.

3. Subie

Posts: 2414; Member since: Aug 01, 2015

Does Lyft not use software? And I guess you've never heard about Microsoft Sync that Ford uses.

5. meanestgenius

Posts: 22388; Member since: May 28, 2014

Ford dumped Microsoft's Sync in favor of BlackBerry's QNX. But they still use Microsoft to supply cloud-based data updates for it. http://www.freep.com/story/money/cars/ford/2015/03/17/ford-sync-microsoft-cloud/24898915/

6. trojan_horse

Posts: 5868; Member since: May 06, 2016

Blackberry again, MG!

11. meanestgenius

Posts: 22388; Member since: May 28, 2014

There's a problem with me posting a fact?

9. Subie

Posts: 2414; Member since: Aug 01, 2015

Interesting, I did not know that it was QNX they had switched to. There are still thousands of vehicles on the road with the Microsoft version though and my point to the first poster was that MS was not only interested but currently involved in the auto industry.

12. meanestgenius

Posts: 22388; Member since: May 28, 2014

Oh, totally agree. Microsoft would be a fool not to be involved in the auto-industry. They're a software company first and Foremost, and the auto-industry is a lucrative one.

4. therealestmc

Posts: 679; Member since: Jul 23, 2012

Why aren't they turning a profit? They take from 25 to 35 percent cut from the rides. Where is all that money going?

10. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

I can imagine alphabet making this a part of Google+. Advertise your ride availability, chat with potential customers, and navigate to their location. All while being tracked by Google...

13. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Lyft are doing it wrong, approaching the big three shows you are not in this for the long ride and are preparing to cash out so why should they pay the sum you wanted. It's like Hollywood, don't call us let us call you.

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