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Lyft Reportedly Failed to Sell Itself to Apple, Amazon, Google—and Uber

On Friday, The New York Times reported that, in further to ghastly negotiations with General Motors, Lyft has broached merger talks with Apple, Amazon, Google, Didi Chuxing—and even arch-rival Uber. The talks and inquiries have taken place over a past several months, and (with a probable difference of GM) they didn’t lead to an merger offer.

Lyft’s merger talks don’t indispensably advise a association underneath duress—Lyft has copiousness of money on hand, and an array of enlargement paths and vital partners, including Didi and GM. But it does prominence flourishing pressures in a ride-hailing zone (and in a maturing tech zone some-more generally).

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Other signs of that shakeout embody a December shutdown of ride-haling and smoothness services during Sidecar, and a sale of Uber’s China business to Didi. That sale—which also put Uber CEO Travis Kalanick on Didi’s board—raised major questions about a Didi-Lyft partnership, that concerned general cross-compatibility of a dual services.

It was also detected final year that Lyft is spending outrageous amounts on selling to grow marketplace share—about 60.5% of a revenue, according to Bloomberg.

Despite such challenges, a associating source told a Times that Lyft has $1.4 billion in cash, giving it copiousness of pillow as it works towards profitability. The motivations behind merger talks are expected some-more vital than existential, and tie-ups with automobile companies or some-more different tech giants could significantly boost Lyft’s efficacy in a market.

It also paints a poignant vital contrariety with Uber, whose Advanced Technology Center was founded in 2015 to work on building a company’s imagination in mapping, safety, and autonomy. Last year it acquired portions of Microsoft’s mapping operation, and it recently announced a designed $500 million investment in mapping. It will pilot-test a swift of self-driving cars in Pittsburgh starting this month, yet with humans overseeing them.

For some-more on ride-hailing, watch a video.

Lyft has also pronounced it will be contrast self-driving vehicles, though in partnership with GM, rather than wholly underneath a possess auspices.

The merger talks competence be a ultimate vigilance of Lyft’s welfare for partnership over going it alone—an proceed that competence not get investors as vehement as Uber’s relentless empire-building, though that does make a lot of sense for a second-place player.

Article source: http://fortune.com/2016/08/21/lyft-failed-to-sell-itself/

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