Ride-sharer Lyft Reportedly Turns Down GM Bid.
Just As Well, Says FT’s Lex.
General Motors has made an unsuccessful attempt to buy all of the ride-sharing company Lyft, and the Financial Times Lex column applauds the outcome, saying GM should find better uses for the money.
GM already owns 9 per cent of Lyft, for which it paid $500 million in January.
According to technology website The Information, Lyft turned down the offer from GM, and decided to seek investment funds elsewhere. Neither Lyft nor GM has confirmed the report.
When GM made its Lyft investment the Uber rival was valued at about $5.5 billion.
Lex said spending a lot more buying money Lyft wouldn’t make sense because it ran a poor second to Uber.
“Now that Uber has stopped pouring money down the drain in China, Lyft looks even more vulnerable to confirming its place as a car-hailing also-ran. In no market has it dislodged Uber as number one; in many, Lyft does not compete. An eventual initial public offering of Uber, with its $68 billion private valuation, continues to be an exciting prospect; a Lyft IPO looks implausible,” Lex said.
GM plans to use Lyft to test plans to launch self-driving electric taxis.