It’s known that General Motors was interested in picking up Lyft. The price the company wanted for the ride-sharing company was roughly $6 billion.
Earlier in the month one of the reasons speculated for the deal falling through was that GM didn’t bring a sufficient amount to the table. In this case GM was short between $2 billion and $4 billion.
According to The Information, Lyft is hemorrhaging money to the tune of $50 million each month. This could definitely be why the company was trying to sell even with enough wiggle room to continue operations and time to turn things around.
Despite the losses, Lyft spokesman Alexandra LaManna was optimistic about the company continuing to grow and that Lyft isn’t looking for a buyer.
The consistent losses are also probably why General Motors went into negotiations with a $6 billion offer. If you’re going to get a new player for your team, you don’t want to bring one in a busted leg or arm, you want a healthy winner. While Lyft has the potential to hold its number spot and become a money maker, at the moment it’s operating with a busted arm of a monthly $50 million loss.