Tech

Lyft should be worried about Uber’s Didi deal, Uber adviser says

Uber-Didi China merger leading to monopoly?
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Uber-Didi China merger leading to monopoly?

Uber's sale of its China business to ride-hailing rival Didi Chuxing should be a major concern for Lyft, according to Tusk Ventures CEO and Uber adviser Bradley Tusk.

That's because Didi will make a $1 billion investment in Uber Global as part of the deal announced Monday, raising questions about the $100 million Didi invested in Lyft eight months ago, he said.

In Tusk's view, Didi is now more likely to put its chips behind Uber, which controls a larger share of the ride-hailing market and has a higher valuation.

"I just think that if you're Didi, and now you've got a stake in Lyft and a stake in Uber, and you're saying which bet do I really want to double down on, you're going to double down on Uber. There's no real comparison to Uber and Lyft," he told CNBC's "Squawk Box."

Tusk Ventures helps tech start-ups navigate politics and regulations. The firm assisted Uber in its dispute with New York City over a proposed cap on its drivers.