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Lyft Seeks to Raise $1 Billion As It Continues to Battle Uber in the U.S

Lyft seeks $1 billion in funding as it ramps up ‘driver first’ programs

L-Uber CEO Travis Kalanick / Lyft cofounders (L-R) Logan Green and John Zimmer

 

The ride-hailing Lyft, number two service in the U.S. and Uber’s biggest rival in the U.S., is seeking to raise up to $1 billion in new funding, according to documents filed in Delaware on Friday first obtained by Bloomberg.

The financing would be Lyft’s largest to date: The company raised $530 million in Series E financing in March, closely followed by an additional $100 million from billionaire Carl Icahn.

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.

According to media reports in October Uber is said to be raising a $2.1 billion mega round, seeking a valuation of at least $62.5 billion,

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.

according to documents obtained by Bloomberg, 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.

 

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