Lyft valued at $15.1 billion after new funding round

Photo by Amelia Holowaty Krales / The Verge

Lyft has raised $600 million in additional funding, valuing the ride-hailing company at $15.1 billion. The money will fund the company’s heated competition with the much more valuable — and better funded — Uber.

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 bruising 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.

This year Lyft is on a pace to record $7.7 billion in gross bookings, the amount it takes in before paying out drivers, according to The Wall Street Journal. Uber, by comparison, had $37 billion in gross bookings last year. Earlier this year, Uber raised $1.25 billion from Japanese tech giant SoftBank, and is reportedly eyeing an IPO in the latter half of 2019.

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 a boon 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.

Comments

Yay for competition. Lyft has been real good to me since dropping Uber a couple years ago. Heres to hoping they stay around for years to come. Also I got a Lyft ad on this article coincidently.

I wish Amex gave me Lyft credits =/

just wait and see uber shares going down after IPO, the same way as Snap. Hype around IPO and after nobody gives a damn

If you think Lyft is worth any more than a few million in patents and key employees, I have some taxi medallions to sell you.

Seems they’re on track to surpass Uber. With their charity donations and image, this will be well deserved. Uninstalled Uber a couple weeks ago after too many incidents. FYI, they have been known to go longer routes late at night. My guess is an attempt that people who drink more don’t notice it.

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