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The value for Uber acquiring Lyft is in eliminating it's only real competition, which is worth more than any number of drivers and users. That's also why they'

The value for Uber acquiring Lyft is in eliminating it's only real competition, which is worth more than any number of drivers and users. That's also why they'd have to pay a large premium over the current $7.5B valuation, such as the $10B suggested by parent. I'm unaware of any transportation companies that could really afford to purchase Lyft.

tyingq 10y ago
Didi might be a contender.
- dmbass 10y ago
  Didi already has a non-compete pact with Uber (they acquired Uber's Chinese arm from Uber).
  - exhaze 10y ago
    No - this only applies to Uber not operating in China. Didi can still compete with Uber in any other country.
bogomipz 10y ago
Isn't Lyft only part of Uber's competition. Isn't it also competing against the viability of its own business model, i.e being able to subsidize rides with VC money until a fleet of self-driving cars is a viable replacement for it's drivers?
huac 10y ago
Imagine you're an investor in the last round who invested at $7.5 billion. Now, Uber buys Lyft for $7.6 billion. Are you happy with that return? Any sale, just by necessity really, would have to be for a significant premium.