Japan’s Rakuten sees $947m loss from Lyft investment in latest quarter

A staff of Rakuten Cafe is seen under a logo of Rakuten Inc at a shopping district in Tokyo August 4, 2014. REUTERS/Yuya Shino

Japan’s Rakuten Inc said on Tuesday it expects to take a 103 billion yen ($947 million) loss in the latest quarter on its investment in U.S. ride-hailing firm Lyft Inc.

The e-retailer, whose billionaire founder and Chief Executive Hiroshi Mikitani has a seat on Lyft‘s board, recorded the charge because Lyft shares had “fallen significantly” over the July-September period, it said in a statement to the Tokyo Stock Exchange.

Rakuten, the biggest shareholder in Lyft with a stake of more than 11%, is scheduled to announce financial results on Thursday.

The write-down adds to a 28.4 billion yen unrealized loss on Rakuten‘s Lyft stake for the April-June quarter, with the ride-hailing service locked in a money-burning price war with larger rival Uber Inc in the United States.

At its own earnings presentation last week, Lyft said a growing number of customers were now paying full price for rides, and the improved outlook showed it was on track to be profitable by the end of 2021.

Still, the stock has lost about 40% of its value since the company’s initial public offering in March.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.