Activist investor Carl Icahn sees a big opportunity in Uber’s main competitor Lyft.
He just pumped $100 million into the lesser-known ride-sharing startup, according to The Wall Street Journal. A managing director from Icahn Enterprises will join Lyft’s board of directors. The company raised an additional $50 million from anonymous sources, the Journal said.
Icahn told the paper that investing in Lyft was a “no-brainer,” given that it’s being valued at just $2.5 billion compared to Uber’s $41 billion.
Icahn appears to be trying to cash in on the difference between the two companies, or to start a fight with Uber. Yet he appears unfazed: “If you look at the way the market evaluates Uber and then look at the valuation of Lyft—Lyft is a tremendous bargain,” Icahn said in an interview. “There is room for two.”
Lyft president John Zimmer told the newspaper that Icahn’s new…
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