Uber arch-rival Lyft has confirmed raising $600 million in its latest round of funding. The company raised this sum at a $7.5 Billion valuation, taking a slew of new investors on-board. This comes after earlier reports that the company was raising a $500 million round from various investors.
Confirming the fund raise through a blog post, Lyft said:
Today, we’re taking another important step in Lyft’s mission to improve people’s lives with the world’s best transportation. We’re excited to announce the close of $600 million in new capital, along with a $7.5 billion post-money valuation.
The participants in the round included old backers like Rakuten and Janus Capital. However, it also saw the company bring new global partners like AllianceBernstein, Baillie Gifford, KKR, and Canada’s Public Sector Pension Investment Board (PSP) on-board. This round brings Lyft’s total funding to $2.61 billion.
Lyft refrained from going into particulars regarding its plans for the new money that is flowing into its coffers. The company merely said that it will continue to focus on the people behind its business, including “drivers, passengers and team members.” While there were rumors that the company will expand in a big way, it did not exactly elaborate on any such plans — if they exist. To remind you though, Lyft has already opened up shop in 10 new US markets in 2017 alone.
We have big plans on the horizon, and will continue investing in new technology and hospitality in order to create experiences that passengers and drivers will love.
The reference to new technology, could well refer to self-driving cars, an area which is seeing aggressive competition between car manufacturers, cab aggregators and tech behemoths, as all of them struggle to dominate the very nascent market.
The round also confirms an increase in Lyft’ valuation, which could have been spurred by the spate of troubles Uber has been facing of late. The latter was mired in a series of controversies that included claims of harassment at the workplace, a #deleteuber campaign and other trouble besides.