Lyft Inc. is worth more than its recent $2 billion valuation, based on the $50 billion value of larger car-hailing rival Uber Technologies Inc., investor Carl Icahn said, after he led a fundraising round at Lyft last week.
“If Uber is worth $50 billion, Lyft is worth a lot more than $2 billion,” Icahn said today in a phone interview with CNBC. “Under the right circumstances, if they keep growing the way they would, I would certainly be very interested in putting more money in and I’m sure I’m not the only one.”
Lyft’s latest fundraising valued the startup at about $2.5 billion. Both of the mobile car-booking applications are risky investments, but Uber executives “don’t have a patent” on ride-sharing, and the only reason Lyft wouldn’t be able to compete is if it couldn’t continue to raise capital, Icahn said.
“The investors that have put in money I think have answered that question,” Icahn said. “Why can’t there be two competitors here?”
San Francisco-based Lyft last week raised $150 million, led by an investment of $100 million from billionaire Icahn. The round will help Lyft in its battle for market share with Uber. A Lyft presentation to investors that was obtained by Bloomberg News in April showed mounting costs for marketing the service. Lyft projects a 512 percent jump in net revenue this year to $796 million.