What Uber's China deal means for Lyft

EquityZen has produced these weekly updates for secondary investors, shareholders and company representatives.

If you find this useful, subscribe to our weekly newsletter!

What Uber's China deal means for Lyft
In order to view EquityZen's Investment Offerings, you must be an Accredited Investor. Please verify your status below. 
Verify your Accredited Investor status

Sign a term sheet in August and receive up to $500 off your investment. Simply click here to view our current investment opportunities and click the "Claim" button to apply this offer!  

Refer to full terms and conditions for additional information.

Hello Investors,
What a potential Uber IPO means for Lyft
This week's big M&A news was that Uber is selling its China business to Chinese ride-sharing company Didi Chuxing, in a deal worth $35 billion.
While the sale puts a bit of a dent in Uber's plan of global transport domination, it will also free up the company's ability to go public in the near term.
(...except, not China.)
Uber's failed attempt at winning the market in China was costing it nearly $1 billion a year. With the announced sale to Didi, Uber has made significant strides towards a profit-generating enterprise: the company announced that it's now profitable in the US, as of April 2016.
With the failed Chinese growth strategy behind them, Uber now has a near-profitable, growing technology business that should be well-received by public market investors.
"Okay okay, we get it. What does that mean for Lyft?"
It has to do with antitrust. Uber benefits from having a successful (albeit smaller) rival in Lyft. This would suggest that Uber will steer away from trying to destroy their competitor. But it also removes any likelihood that they would acquire Lyft.
Furthermore, the acquisition raises some concerns for Lyft, as they were previously tied to Didi Chuxing in an anti-Uber global alliance (along with Ola Cabs in India and GrabTaxi in SouthEast Asia). Will Didi continue to provide support Lyft, or might they terminate the relationship? Didi has not commented yet.
Phil Haslett | Founder + Head of Investments | EquityZen 
In other news...
“The venture capital industry faced worries earlier in the year that it had hit a rocky patch. Yet investors keep pouring money into mammoth new venture funds."
“Uber is believed to have conceded domination of China’s ride-hailing market to rival Didi Chuxing, but it’s not walking away empty-handed."
“Data integration company Talend made its debut on the Nasdaq"

Funding Rounds Since Last Week

Copyright © 2016 EquityZen, All rights reserved.
You are receiving this because you signed up on EquityZen's investor site. We provide accredited investors with exclusive investment opportunities in established private companies.

Our mailing address is:
10 West 18th Street
Floor 7
New York, NY 10011

You are receiving this e-mail because you have verified your accreditation status on EquityZen's platform and because you have an existing relationship with EquityZen. Securities offered through EquityZen Securities LLC ("EquityZen Securities"). EquityZen Securities is a member of FINRA/SIPC.

Hyperlinks to sites outside of our domain do not constitute an approval or endorsement of content on the visited site.

Have questions?