Following the highly publicized acquisition of Uber by Didi Chuxing, one market player has found itself in a dilemma. Lyft is currently in a crossroad since the company has strongly allied itself with Didi Chuxing in the past, but the latter decided to acquire Lyft's biggest competitor, Uber.

According to Tech Node, Lyft is considered to be the second largest ride-hailing company in the United States, closely competing with Uber. However, with Didi Chuxing's acquisition of Uber China, Lyft is now left with one option: to pursue a buyout.

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There are speculations that Lyft has approached Didi Chuxing in hopes of selling the company before being turned upside down due to competition. Lyft is reportedly also in negotiations with Apple, Google, Amazon, General Motors, and even Uber. It appears that Lyft is shopping for buyers before being completely edged out by the competition.

Although Didi Chuxing and Lyft's collaboration in the past yielded positive growth for the two companies, Didi's acquisition of Uber China has completely changed things. With Didi Chuxing and Uber's alliance, Lyft will most likely be left behind in terms of competitive business.

Moreover, Lyft has neither the capital nor the investors to back it up in case the company decides to take on the massive Uber-Didi alliance. This has left Lyft with one viable option, and that is to broker a sale with one of the company's strategic investors which include Did and General Motors.

Lyft is allegedly working with banking firm Qatalyst Partners to manage the possible sale. As of January, Lyft was valued at $5.5 billion.

TagsDidi, Uber, lyft, ride-hailing, china