Number two ride-hailing app Lyft has been looking to better compete with top dog Uber while fending off newer transit startups like Bridj. And so, after nine funding rounds and a company valuation of $5.5 billion, it went to look for an owner.
Would General Motors increase its investment of Lyft to a controlling stake? Nope. According to Recode‘s sources, it didn’t make a bid. The company shopped itself out to Alphabet, Amazon, Microsoft and even Apple for $9 billion before cutting down that price.
As Uber is divesting from its service in China, it now has incentive to hit Lyft hard back at home. Having a large backer would help Lyft defend and, perhaps, steal market share.
Then again, Uber could essentially just monopolize the ride-hail market and acquire Lyft. But tipsters to Bloomberg have said that while the thought has been floating around since 2014, the dollar figure attached to that thought was $2 billion. A second takeover takedown factor? CEO Travis Kalanick reportedly expressed concerns over regulators looking at the deal.
It’s all just as well as Lyft would not really consider such an offer anyways.
Lyft is nowhere near financial trouble, as it is said to have $1.4 billion banked. But whether it gets squeezed by competitors from the top and bottom or it undergoes radical changes in positioning on its own behalf, it may want to keep on searching for that perfect match in corporate heaven.