Uber or Lyft? Softbank split over which cab to hail in America

Global telecom and internet giant Softbank known for its investments in prolific startups has recently said that it would be interested investing in US-based cab-hailing startups Uber or Lyft , as per a Reuters report.

The move does not come as a surprise for the startup circuit as Softbank has shown interest earlier in cab aggregating startups like Didi Chuxing in China, Ola in India, Grab in Southeast Asia and 99 in Latin America.

"Whether we decide to partner and invest into Uber or Lyft, I don't know what will be the end result," CEO Masayoshi Son told reporters at SoftBank's first-quarter earnings briefing on Monday.

Uber is presently valued at USD 69 billion, however the string of recent scandals inside the company have dented its reputation in the eyes of investors and thus a fast-growing Lyft may prove to be a major rival in the near future.

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Lyft’s total valuation after a fresh round of USD 600 million of funding has been upgraded to USD 7.5 billion.

Son said during a Q&A session: “We haven’t decided which way, but [the] US is a very big market — it’s [the] most important market — so we are definitely very much interested in the US market. Whether we decide to partner and invest into Uber or Lyft, I don’t know what will be the end result,” according to the report.

Talks with Softbank represent a major turning point for Uber too as they have attracted more than 500 investors who want to own a piece of the world’s most valuable startup, as per a Bloomberg report.

Japanese giant Softbank had recently launched a USD 93 billion technology fund for investing in startups around the globe, and is all set to make a foray into America this time.

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“This is the shared economy and one of the most important industries, I think the way people use the transportation and the lifestyle will be different from today [compared to in] 30 years [or] 50 years,” CEO Masayoshi Son he explained.

Son, a strong believer in autonomous cars, believes that the cab hailing business will transform and take an even more important place in the near future.