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Lyft Seeks to Raise $1 Billion As It Continues to Battle Uber

December 21, 2015, 8:23 PM UTC
One Third Of San Francisco Cabbies Switch To Ridesharing Services
SAN FRANCISCO, CA - JANUARY 21: A Lyft car drives along Montgomery Street on January 21, 2014 in San Francisco, California. As ridesharing services like Lyft, Uber and Sidecar become more popular, the San Francisco Cab Driver Association is reporting that nearly one third of San Francisco's licensed taxi drivers have stopped driving taxis and have started to drive for the ridesharing services. (Photo by Justin Sullivan/Getty Images)
Photograph by Justin Sullivan — Getty Images

The ride-hailing competition in the U.S. is showing no sign of cooling off.

Uber’s biggest rival in the U.S., Lyft, is seeking to raise up to $1 billion in new funding, according to documents filed in Delaware on Friday first obtained by Bloomberg. Lyft was previously rumored to be raising half as much cash, according a New York Times report in mid-November.

Lyft valuation will undoubtedly be higher than the $2.5 billion value it made public when it raised its last round in March, although by exactly how much is still unclear. In November, it was said to be seeking a $4 billion valuation—a fraction of Uber’s current valuation of $52 billion. According to experts Bloomberg spoke to, it could be anywhere from $3.9 billion to $4.5 billion. The legal document lists the price of the company’s preferred stock at $26.79, Bloomberg reports, up from its previous price of $19.44, per one expert.

For its part, Uber is said to be raising a $2.1 billion megaround, seeking a valuation of at least $62.5 billion, according to media reports in October.


Though it’s still the number two service in the U.S., trailing behind Uber, Lyft’s efforts to remain a significant player are clear. Along with its continued fundraising, it also allied with some of Uber’s other rivals to form a network of ride-hailing services to serve their collective users in Asia and the U.S. In November, Lyft co-founder and president John Zimmer estimated that the company’s gross annual revenue for 2015 will be $1 billion, though its net revenue will be less because it shares a significant portion with its drivers. It calculated that figure based on its gross bookings for October, which totaled roughly $83 million from 7 million rides. However, it has lost $127 million in the first half of 2015, on $46.7 million in revenue, according to documents obtained by Bloomberg.

We’ve reached out to Lyft and will update if we here more.