Icahn Invests $100 Million in Lyft Car-Hailing Service

Carl Icahn has invested $100 million in Lyft Inc., the San Francisco-based ride-share service that competes with local rival Uber Technologies Inc.

The investment is unusual for Icahn, who traditionally targets large publicly traded companies. His Icahn Enterprises LP will gain a seat on Lyft's board. Icahn tells The Wall Street Journal he considers the investment a "tremendous bargain." He predicts ride-sharing will become a "fundamental component" of personal transportation as urbanization spreads over the next decade.

Lyft, which currently operates in 65 U.S. cities, is valued at about $2.5 billion compared with $41 billion for Uber, which operates its ride-hailing services in about 300 cities worldwide. Both companies use smartphone apps to connect riders with drivers.

The Journal notes that Lyft expects to generate revenue of about $800 million in 2015 compared with more than $2 billion for Uber. Icahn shrugs off the difference in size of the two companies, telling the Journal, "There is room for two."