FILE PHOTO: The Lyft Driver and the Hub, it is to be seen in Los Angeles, California, united states, March 20, 2019 at the latest. REUTERS/Lucy Nicholson
TOKYO (Reuters) – japan Rakuten Inc said on Tuesday is expected to be 103 billion yen ($947 million) with a loss in the last quarter of the year from its investments in the US in the ride from firm to Lyft Inc.
The e-shop, in which billionaire and co-founder and Chief Executive, Hiroshi Mikitani, has a seat in the Lyft board of directors, is included in the cost, because Lyft shares had “fallen sharply” in the period from July to September period, it said in a statement to the Tokyo Stock Exchange.
Rakuten, the largest shareholder of Lyft, with a stake of more than 11%, and it is scheduled to announce financial results on Thursday.
The charge is added to a 28.4 billion yen in unrealized losses on Rakuten’s Lyft interest for the April-June quarter, with the drive from service and locked away in a money-burning price war with larger rival Uber, Inc, in the United States of america.
With her own earnings presentation last week, Lyft said, in a growing number of customers are now paying the price in full for the trip, and the improvement in the 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 its initial public offering at the end of March.
Report by Kevin Buckland; Editing by Saumyadeb Chakrabarty