Carl Icahn Weighs In On His $100 Million Lyft Investment

Icahn Enterprises LP IEP chairman Carl Icahn recently invested $100 million in ride-sharing company Lyft. Icahn was on CNBC Tuesday to explain why he made that investment.

Secular Change In How People Travel

“I think that area, you don’t have to be a technology genius to understand that, I think, you have a secular change in the way people are moving around and I think there’s urbanization happening before your eyes,” Icahn said. “So, I think this is going to be a complete new way to travel. I think Lyft is growing at a compelling way.”

The Numbers

“You look at their numbers and the multiples, [it's] astounding how fast the drivers, the numbers of drivers and the trips they are taking. Now, admittedly it’s a risky investment as certainly any new company is in an area like this.”

He continued, “But I think Lyft as they are now and if Lyft can make it, the differential between the valuation in Uber or Lyft certainly whets the appetite of an older arbitrageur. I mean, here you are buying Lyft for $2 billion and you are buying Uber for $50 billion and you do the math. And, so, if you want to say there is risk in this area, there is risk in both of them.”

Lyft Will Survive

"The question, I think, was always, will Lyft survive? I would tell you, I believe Lyft will survive because of people like me to invest after you see the numbers and I am pretty cautious guy and pretty conservative. I think Lyft will get the money they need to survive and compete if indeed Uber wants to try to compete in a very strong handed way. I think Lyft can certainly fight back,” said Icahn.