Well-known activist shareholder and billionaire investor Carl Icahn today announced a $100 million investment in Lyft, part of a new $150 million Series E round extension for the San Francisco-based on-demand ride-hailing company.
Icahn, whose Icahn Enterprises L.P. has multi-billion dollar stakes in companies like Apple and eBay, said he believes “ride-sharing is poised to become a fundamental component of our transportation infrastructure.”
“The company’s revenue growth to date has been extremely compelling, and increasing urbanization over the next 5 to 10 years should enable the company to maintain that trajectory,” Icahn said in a statement. “Additionally, I’ve been very impressed with Lyft’s founders and management team, and I believe they are well-suited to take advantage of this opportunity and to make Lyft an extremely successful company.”
Lyft, which reeled in $530 million in March and was valued at $2.5 billion at the time, has now raised $1 billion in its three-year history.
“Carl Icahn’s record as an investor is unparalleled,” Lyft co-founder John Zimmer said in statement. “His recent success investing in the technology sector stems from a focus on companies that deliver incredible long-term value to their customers, such as Apple, Netflix and eBay/PayPal.”
Zimmer said the fresh cash will be used to expand Lyft’s operations in the U.S., where it is live in 65 cities. The company has yet to expand internationally.
Icahn, who has a net worth of $22.4 billion, told the Wall Street Journal that his $100 million investment in Lyft is a “tremendous bargain.” As a result of Icahn’s investment, Icahn Managing Director Jonathan Christodoro will join Lyft’s Board of Directors.
Uber, meanwhile, is operating in more than 300 cities worldwide and has raised nearly $6 billion. The company reportedly wants to raise another $2 billion, which would value the company at $50 billion.