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.
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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/