Lyft reportedly in talks to buy Spain’s Cabify for $3 billion (Updated)
This was story was updated at 7:14 a.m. PST to include Cabify’s denial of acquisition talks.
In the latest sign of its growing confidence, U.S.-based Lyft is reportedly in talks to buy Spanish transportation company Cabify.
Spain’s El Confidencial reported the talks in a story that was spotted by Tech.eu. While the deal would be one of Spain’s biggest startup wins, it would also give Lyft a quick way to pursue global expansion beyond its current operations in the U.S. and Canada.
Earlier this year, Lyft opened an office in Munich, Germany, its first such outpost on the continent, though it does not yet offer its ride-hailing service in Europe. It has reportedly also been in talks with the city of London, but has not yet announced its service there.
Just a few years ago, it seemed Lyft was on the verge of being left in the dust by Uber, a better-financed and more ruthless competitor that quickly expanded across the globe. But as Uber stumbled over a range of regulatory and executive problems that ultimately led to the ouster of CEO Travis Kalanick, Lyft got a second look from investors, as well as users.
Meanwhile, Cabify, which has raised more than $400 million in venture capital, is focused on Latin America, Spain, and Portugal. According to El Confidencial’s story, the two companies have been talking for several months, and the price tag is hovering around $3 billion, though a deal is far from being announced.
The story also notes that Uber made a run at Cabify, but it was likely pushed off because Japan’s Rakuten owns stakes in both Cabify and Lyft.
UPDATED: Cabity issued the following statement this afternoon regarding the story:
“Cabify categorically deny the rumors about alleged conversations in relation to the sale of the company. [Cabify] has not been meeting with managers of this or other companies to negotiate a possible partial or full sale of Cabify. The company is in an unbeatable state of financial health and sustainable growth, and continues to establish itself in a leading position in the markets in which it operates. As referred, the company remains committed to following its established path, aiming to enter the Spanish stock market in the next 12 to 24 months.”
Source: VentureBeat
