Lyft, San Francisco-based rideshare service, will be expanding its US reach with the help of a $100m investment it received from Wall Street activist investor, Carl Icahn.
The Uber competitor also received $50m from undisclosed sources, bringing its total value to $2.5bn.
“There’s room for two in this area,” Icahn told The New York Times, in reference to Uber. “What I’m saying is there is a secular change going on with the way people are getting around, and with urbanization, it means more people living in urban areas.”
Lyft’s president, John Zimmer, said that in addition to the expansion, the money will also be used to improve its smartphone app, which is currently very similar to the apps of its competitors.
Along with the investment, Icahn was able to secure a seat on Lyft’s board for the managing director for his hedge fund, Jonathan Christodoro.