Lyft, Inc. raised a further $150 million, led by a $100 million investment from activist investor Carl Icahn, of Icahn Enterprises LP. An activist investor is somebody who becomes a significant minority shareholder in a company and tries to influence its management.
One of Icahn’s Managing Directors, Jonathan Christodoro, will join Lyft’s Board of Directors.
Lyft has now raised just over $1 billion. The company will use the $150 million to expand its service, which is currently only available in 60 US metro areas. In comparison, Uber offers its service in over 250 metro areas worldwide.
John Zimmer, President of Lyft, said:
“Carl Icahn’s record as an investor is unparalleled. 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.”
“We’re thrilled to partner with Carl during this exciting period in Lyft’s growth as we work to rebuild the U.S. transportation infrastructure and reconnect local communities. With this additional investment, we remain focused on deepening our U.S. footprint, continuing to lead with product innovation and providing the best possible experience for drivers and passengers.”
Mr. Icahn said:
“We are very happy to be investing in Lyft. I believe that ridesharing 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.”
“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.”