Lyft is reportedly trying to raise half a billion dollars to fund its growth against a cash-flush Uber, The Wall Street Journal reported.
The company is reportedly quietly pitching the new funding round at a valuation between $US6 to $US7 billion, according to The Journal. Lyft declined to comment on the report.
Lyft needs the cash to continue to cut into market share and grow its business. The company flirted with selling over the summer, but decided to stay independent and stick out the fight with Uber.
But Uber has stumbled heading into 2017, and Lyft is seizing the moment to portray itself as the friendlier alternative.
It’s lured customers to its service after more than 200,000 deleted Uber in a single weekend, and now it’s trying to bring investor cash on board too. Uber, meanwhile, is facing a battle on all fronts as it tries to win back customers, its employees, and even its own investor base, which has started speaking out against the ride-hailing giant in the wake of a sexism scandal and investigation into its workplace.
Should Lyft close a new round of funding, the $US500 million infusion would bring its total raised to $US2.5 billion. Lyft’s closest competitor, Uber, is currently valued at $US69 billion after raising $US11.5 billion.