For making its ride-sharing operations more effective and expand itself globally, Lyft is boosting its leadership ranks with the addition of Hiroshi Mikitani, the founder and Chief Executive Officer of Rakuten Inc, to its board. The change would also assist the firm to better compete against Uber Technologies Inc.
Rakuten, the largest Japanese e-commerce firm, is already supporting the Lyft and recently invested $300 million into the San Francisco-based startup. The investment was a part of $530 million funding round that valued the firm at $2.5 billion.
Lyft which provides car-booking services only to customers of America is facing a serious competition from Uber, another ride-sharing firm. Uber services are available in 58 countries and 300 cities worldwide. Both companies are expanding at faster pace, making investors more liable to their model of linking drivers and passengers via the platform of smartphones and software. This innovation has greatly damaged the business of foothold taxi and limousine companies, which are protesting against these companies. Such kind of services provides extra benefits to transportation companies in delivering services to home.
Mikitani “will be Lyft’s champion as we continue to deepen Lyft’s presence in the U.S. and explore new opportunities for expansion,” the company said in a statement.
During a private meeting with potential investors Lyft said it has enough resources and wealth to make partnerships with neighborhood ride-sharing companies across the world, without facing regulatory hindrances.
Lyft’s co-founders Logan Green and John Zimmer are members of the board, together with investors Scott Weiss of Andreessen Horowitz, Geoff Lewis of Founders Fund and Jonathan Christodoro of Icahn Enterprises.
Mr. Mikitani founded the Rakuten Inc in 1997. He is serving the firm as a Chief Executive since 2004. Before Rakuten, he established a consulting business, Crimson Group in 1996. Prior to Crimson Group, Mr. Mikitani worked at the Industrial Bank of Japan, Ltd. (now, Mizuho Corporate Bank, Ltd.) from April1988 to 1996. Looking at his biography he is an experienced industry veteran so no doubt1Q his expertise plays a key role in development of the Lyft.
