2017 is proving to be a good year for Lyft so far, recently announcing a funding round of $600m at a valuation of $7.5bn.
This most recent round included funding from new partners included KKR, Baillie Gifford, Alliance Bernstein and previous investors such as Janus Capital. This ride hailing app has raised a total of $2.61bn, and this recent investment will assist with its efforts to gain the top spot in the highly competitive industry.
Lyft is aiming to capitalize on the problems its main competitor and industry leader, Uber, is currently facing. Uber has recently been in the spotlight for a plethora of problems ranging from sexual harassment, legal and cultural issues. Most recently they have been embroiled in a lawsuit with Alphabet’s self-driving program, Waymo, over alleged stolen property technology. The issue is surrounding the self-driving car start-up, Otto, which was started by former Waymo employees and acquired by Uber last year.
In 2017 Lyft has also experienced a sizeable increase in rides, seeing a 34% jump from the last quarter of 2016. This brings total number of rides in excess of 70 million and a 142% yearly growth road. Also, Uber launched the genius #DeleteUber campaign earlier this year, this saw a 60% increase in weekly new registrations. This recent round will give Lyft the power to continue their aggressive expansion in the US, having already added over 100 new markets in the region so far, this year.
It will be interesting to see if Lyft can capitalize on the troubles and take the number one spot from arch rivals, Uber.