Lyft is reportedly raising a new round of funding to help it catch up to Uber, Re/code reports.
Sources told Re/code’s Liz Gannes that fundraising efforts for Lyft, which has already raised $US330 million, are going well.
The ride-hailing company company — which was last valued at $US850 million — is in the midst of its efforts, with what one person close to the situation said was a “significantly” higher valuation. Both that and the amount to be raised are still in flux.
As competition in the on-demand car-hailing space heats up, Lyft’s fundraising efforts will inevitably be compared to those of its rival, Uber. Uber just raised a $US1.2 billion round of funding at a $US41 billion post-money valuation, and operates in 53 countries and more than 200 cities globally. By comparison, Lyft operates in 65 US cities currently.
In a profile for Vanity Fair, Uber’s CEO Travis Kalanick admitted to previously messing with Lyft’s fundraising efforts.
“We knew that Lyft was going to raise a ton of money,” Kalanick said.
“And we are going [to their investors], ‘Just so you know, we’re going to be fund-raising after this, so before you decide whether you want to invest in them, just make sure you know that we are going to be fund-raising immediately after.'”
Lyft raised its most recent funding, a Series D round of $US250 million, in April 2014. The round of fundraising was led by hedge fund Coatue Management, Alibaba, and Third Point, with participation from existing investors Andreessen Horowitz, Founders Fund, and Mayfield Ventures.
We have reached out to Lyft for comment and will update this post when we hear back.