Uber's Rival Is Funded

Uber has received a bad news as its rival is funded by the well-known investor, Carl Icahn.

Uber has received a bad news as the well-known investor, Carl Icahn, has funded its rival. Uber news reported that Mr. Carl has invested $100,000,000 in the cab service, Lyft. A managing director from Icahn Enterprises will soon become a member of the transporter’s board of directors.

The company has also received an additional $50,000,000 from an unknown source. Carl is not the only supporter of the Uber’s competitor, as a number of other organizations have also backed the three-year-old setup, including Alibaba Group Holding Limited and Andreessen Horowitz.

Uber news today affirmed that Lyft, known for its pink moustache logo, employs a high-tech phone application to connect passengers with paid drivers who drive their own cars rather than livery vehicles. The company differs from its rival by providing a wider range of facilities, encompassing limousine-like rides. In many of its overseas markets, such as China, Uber is exposed to tough competition from established local transportation firms, while in others, such as Korea, it has suffered from legal obstacles

Apart from the organization, a number of other businesses have also attracted the financer. These include eBay and Apple. Uber informed that it has also attracted investment worth $530,000,000 in a round led by the Japanese retailer, Rakuten Inc., in March. The credibility of the company contributes to its fund generation capability. The strong name of business entity gains funds with minimum efforts.

A professor of Applied Economics at George Washington University, Joann Weiner, has stated that Uber does not deserve to monopolize the market. Experts presented their view that at $2,500,000,000, Lyft is undervalued and the sponsor’s interest will help the firm raise more funds. It has maintained a record of receiving huge sums of money, as it has received $1,000,000,000 since its introduction in 2012.

Media sources have highlighted that Uber is also interested in fund generation, as it intends to raise a new round of $1,500,000,000 to $2,000,000,000 at a value of $50,000,000,000 or more. It is expected that the six-year-old startup would soon become the largest venture-backed company in the world.

Many investors believe that Uber leads the cab service market. Professor at New York University’s Stern School of Business, Arun Sundararajan, has stated that the invested resources would add to the credibility of Lyft. Its officials have welcomed Icahn’s financial contribution and it is most likely that these received funds would help Lyft grow in the competitive world. The management of Uber should devise strategies to deal with its growing rival.