Uber Won’t Pay More Than $2 Billion For Lyft; Lyft Responds

Recently there have been reports that Lyft apparently tried to sell themselves to companies such as GM. However that’s not all as it was later revealed that Lyft had also approached other companies like Apple, Google, Amazon, and even their rival, Uber, but it seems that none of these talks yielded any fruits.

That being said, a recent report from Bloomberg revealed that the reason why could be due to Lyft’s asking price. According to alleged private discussions, Uber had told some of their investors that they would not pay more than $2 billion for the company, which is way below what Lyft was seeking, which according to Recode was set at $9 billion.

However even if the price tag were at $2 billion, Uber would not buy the company as it would most likely run into regulatory trouble. Given that Uber and Lyft are pretty much the main ride-sharing services, Uber buying Lyft would more or less give them a monopoly, something antitrust regulators would definitely not allow to happen.

Lyft has since responded to Bloomberg’s report and in a statement made to The Verge, a spokesperson said, “The Bloomberg report is a classic example of Uber using unsavory tactics in an attempt to impact our business. Lyft is not for sale, we are on a fully funded path to profitability.” This echoes what we had said in the previous post, which is that Lyft is by no means in any kind of financial trouble, and that maybe they had reasons for seeking potential buyers.

Tyler Lee
Categories: Transportation
Tags: Lyft, Uber