Lyft just got a huge lift.
Calling it a “bargain,” billionaire investor Carl Icahn threw $100 million behind Uber’s biggest ridesharing competitor, according to The Wall Street Journal.
The new boost of funding puts Lyft at a $2.5 billion valuation. Sure, that’s a drop in the bucket compared to Uber’s $41 billion valuation, but it’s a sizable vote of confidence from one of the tech industry’s most well-known investors. Icahn himself is reportedly worth upwards of $20 billion.
Icahn’s investment is yet another sign that ridesharing as an industry isn’t going anywhere anytime soon. “I believe that ridesharing is poised to become a fundamental component of our transportation infrastructure,” he said in a statement. An investment in a small startup like Lyft is uncharacteristic for Icahn, whose portfolio tends toward multi-billion stakes in the likes of Apple and eBay.
As Wired put it, Icahn’s stamp of approval can only help Lyft with an extra boost of legitimacy and the possibility of attracting more funding from serious investors (Lyft already counts Icahn’s occasional rival Marc Andreessen as ones of its investors).
Lyft currently operates in 65 cities. Uber is in 250.
[via The Wall Street Journal]