Lyft is seeking $500 million in funding to better compete with Uber

To say that Lyft is the underdog is a bit of an understatement. Whereas Uber has already raised billions in funding, with billions more to come in the future, and operates in hundreds of cities across the globe, Lyft only operates in the United States. In order to compete with its much larger rival, Lyft has been really aggressive with its deals an incentives, which has proven to be great for both customers and driver, but that alone won’t be enough to compete with Uber. That’s why Lyft is looking to raise $500 million in funding, which would value it at around $4 billion. 

Even as questions swirl over the fund-raising environment for hot young start-ups, the ride-hailing sector is barreling into new funding talks at top speed. Lyft, the ride-hailing start-up, is seeking to raise new capital, four people briefed on the round said, as Uber, its larger rival, also ramps up conversations with investors about another private fund-raising. Lyft, which is based in San Francisco, is seeking about $500 million at a valuation of approximately $4 billion, said the people, who spoke on the condition of anonymity. That’s up from the company’s current valuation of about $2.5 billion. The figures are still in flux and may change as fund-raising talks continue, the people said. Uber is meeting with investors about a new round as well, which is expected to close in December, said other people with knowledge of that round, who also asked not to be named because the details are not yet public. Uber is hoping to raise roughly $1 billion at a valuation of $60 billion to $70 billion, other people told The New York Times in October. The company is currently valued by investors at about $50 billion. Representatives from Lyft and Uber declined to comment on the fund-raising process.