Uber beware! Lyft is coming strongly for you. Why? We hear reports that Lyft has raised $600 million in extra funding, valuing the ride-hailing company at $15.1 billion.
The funding round was led by Fidelity Management and Research Company and was raised primarily from existing investors. It comes over six months after raising $1.5 billion led by CapitalG, Google’s venture arm. At the time, the company was valued at $11.5 billion.
The financing news comes at a time when its main rival Uber is beginning to stabilize after a rough 2017. Lyft had sought to capitalize on the #DeleteUber phenomenon by marketing itself as a more “woke” alternative. Lyft gained market share and spread into Canada, while Uber confronted obstacles in its overseas markets.
Both companies are also racing to develop self-driving car technology, even though Uber is still reeling from a fatal crash in Arizona involving one of its autonomous vehicles this past March.
The result of the rivalry has been good for riders: low fares, easier-to-use apps, and bigger bonuses for drivers — which translates to bigger cash burns for both companies, neither of which has managed to turn a profit.
