Lyft Receives Rare VC Investment From Loeb's Third Point

Will Lyft be the next mega internet-based success story?

$250 million raised from well-known investors, with previous valuations at $700 million

The ride-sharing company said on Wednesday it had raised $250 million from a group that includes Alibaba Group, a Chinese e-commerce firm, but perhaps most notably the firm garnered an investment from Dan Loeb’s Third Point.

Loeb’s Third Point seldom invests in early stage, venture investments, preferring an activist approach with established firms already trading on public stock exchanges.  Loeb was, however, one of the largest early stage investor in Yahoo!

Lyft is a major player in ride-sharing, competing with Uber, which was valued by TPG at $3.5 billion, as reported in the...