Lyft president says ridesharing service isn't looking to sell, blames Uber for rumors

Ridesharing service Lyft is not actively looking for a buyer, though it has been approached by interested parties in the past, according to the company's president.

"Lyft is not seeking a buyer," John Zimmer told Business Insider. "Getting approached and then having it characterized as us wanting to sell the business and failing to do so is a large mischaracterization. If the company is approached, it doesn't mean the company is looking."

Last week Bloomberg and the New York Times reported that the company had approached or held talks with a range of companies — including Apple, Amazon, GM, Google, Uber, and Didi Chuxing — but was unable to cement a deal. In June, the Wall Street Journal noted that Lyft had hired a Qatalyst Partners, a firm which could either find a buyer or compare possible bids.

Occasional takeover offers are part of the "normal course of business," and the company simply reviews anything that might be of real interest, Zimmer said.

The executive notably charged that Lyft's chief rival, Uber, was responsible for spreading rumors, making special reference to the Bloomberg report. He didn't elaborate on the matter, but on Sunday an anonymous source told The Verge that Lyft was angry with Uber CEO Travis Kalanick for discussing Lyft's valuation with investors.

The ridesharing/ride-hailing industry has become an object of intense scrutiny, not just because of its growing size, legal issues, and pay concerns, but because both automakers and high-tech companies are beginning to enter the mix with self-driving technology in mind. Uber already has some self-driving SUVs entering service, and Ford is planning to join the industry in 2021.

If Apple bought Lyft, it would be likely be an overt sign of the company's plans for the "Apple Car", also expected in 2021. The company has already invested $1 billion into China's Didi Chuxing, without sharing any explicit reasons why.

18 Comments

darkpaw 212 comments · 15 Years

About 8 years ago

I'm not surprised. Kalanick is an untrustworthy a-hole. Uber is here in London, but given the dirty tricks this company plays, I'm never going to use them. I'm surprised some of my friends actually use them. Uber is a massive company, headed by a d!ck, that acts like a d!ck.

Soli 9981 comments · 9 Years

sog35 said:

Uber playing dirty again.

Does not this company have any ethics?

It doesn't appear that way.

Making plans to fire their entire work force with robots.
This isn't an example of that. Self-driving cars are happening and they are safer, which means this is the future. Additionally, automobiles will still need a pilot, just like commercial airplanes still need a pilot (and a co-pilot) even when they have "auto-pilot." Eventually, driverless vehicles will occur outside of mass transit and commercial highway situation, but that's still pretty far away.

Finally, Uber isn't in the employing drivers business, it's in the vehicle for hire business. The drivers are a cost center, and is not unlike any other business that tries to reduce the high cost of employees when met with a more efficient method. Are you upset that the Internet and search engine companies put door-to-door encyclopedia salesman out of business? I'm not, and I doubt you are either. What about the iPhone, Mac, and iTunes [Music] Store beckoning the fall of many industries and jobs because Apple used technology to make things better for the customer? Again, I'm not and I doubt you are upset with Apple's success with ushering new technologies.

maestro64 5029 comments · 19 Years

I wonder if Lyft's CEO thought maybe it was his investors looking for a buyer, would not be the first time a company was sold from under its founders especially when the founder is not longer the majority share holder. Maybe the investors are getting tired of waiting for a return and have decided to cut bait and move elsewhere.

Soli said:

sog35 said:

Uber playing dirty again.

Does not this company have any ethics?

It doesn't appear that way.

Making plans to fire their entire work force with robots.
This isn't an example of that. Self-driving cars are happening and they are safer, which means this is the future. Additionally, automobiles will still need a pilot, just like commercial airplanes still need a pilot (and a co-pilot) even when they have "auto-pilot." Eventually, driverless vehicles will occur outside of mass transit and commercial highway situation, but that's still pretty far away.

Finally, Uber isn't in the employing drivers business, it's in the vehicle for hire business. The drivers are a cost center, and is not unlike any other business that tries to reduce the high cost of employees when met with a more efficient method. Are you upset that the Internet and search engine companies put door-to-door encyclopedia salesman out of business? I'm not, and I doubt you are either. What about the iPhone, Mac, and iTunes [Music] Store beckoning the fall of many industries and jobs because Apple used technology to make things better for the customer? Again, I'm not and I doubt you are upset with Apple's success with ushering new technologies.

I can not believe how many times you contradicted yourself. Are the drivers employees or not. Driver are just a cost of doing business as will be anything which drives. Whether Uber pays a driver or owns a self driving car there are going to be cost, today Uber does not pay for fuel if they own the cars they have to pay for fuel whether gas or electricity, Gas has 99% uptime verse electrical cars will only have 50% to 75% up time.
You're correct Uber wants its cake and eat it too, They want drivers who are independent workers who use uber to find passengers, but they do not want the headache of dealing with people. Yeah robot are so much more reliable and do not complain. Self driving maybe coming but it is a long way off, there are loads of issues which computer or Machine learning can not handle. Machine learning works great from learning from past experiences, what machine learning is really bad with is dealing with new situations. In the mean time Uber will have to rely on drivers their largest cost, and some how figure out how to make money. I do not see the market giving them the Amazon pass on turning a profit. At some point they need to turn a profit or the investors will want out.

bsimpsen 400 comments · 14 Years

Soli said:

Additionally, automobiles will still need a pilot, just like commercial airplanes still need a pilot (and a co-pilot) even when they have "auto-pilot."

Ford doesn't agree with you...

http://www.theverge.com/2016/8/16/12504300/ford-autonomous-car-ride-sharing-2021

With no steering wheel and no pedals, calling the occupant of one of Ford's autonomous cars a "pilot" seems incorrect.