BY KATHRYN LOHMANNThe ride-hailing company Lyft is in talks with banks to acquire the assets of two of its ride-share competitors, one of which is owned by a former Uber employee, The Wall Street Journal reported Wednesday.
The company, which was founded in 2009 by Travis Kalanick, is seeking to acquire rival Sidecar, which provides its drivers with the option to pay for rides in return for an on-demand service.
Uber is also interested in acquiring the business of rival Grab, which allows users to pick up other passengers without the need for an Uber driver.
The companies are looking to acquire both companies by buying the business assets, according to the Journal.
“In the event that we’re able to acquire or retain both of the companies, we will work diligently with our banking partners to resolve the current liquidity issues,” Lyft spokesman Jordan Cohen said in a statement.
“If we are unable to acquire Sidecar or Grab, we intend to work with them to find the resources necessary to make the most of our strategic position and acquire the companies assets as quickly as possible,” Cohen added.
The WSJ reported that Lyft is interested in buying Grab as part of a larger transaction, but the company did not confirm its plan.
The deal would not create a rival to Uber, which operates in more than 180 countries.
Uber has faced a surge in losses as it seeks to scale up its services to accommodate demand from the burgeoning middle class.
The ride-sharing service’s business model, which relies heavily on the use of drivers and the use and rental of self-driving cars, has attracted many new customers.
The Wall Street Times last month estimated that Lyft had lost about $1 billion in the last year.
The transaction would mark Lyft’s biggest acquisition since its 2011 purchase of competitor Lyft, which brought in about $2 billion in revenue.
In 2015, Lyft raised $2 million in funding from Founders Fund, Kleiner Perkins, and Benchmark Capital.