Lyft scoops up $600 million while rival Uber struggles

Lyft on Tuesday said it raised $600 million, confirming rumors that have been circulating for weeks about another fundraising round.

The San Francisco-based ride-hailing company now is worth $7.5 billion.

The fundraising round including existing partners such as Rakuten and Janus Capital, and new investors such as AllianceBernstein, Baillie Gifford, KKR, and Canada’s Public Sector Pension Investment Board (PSP), Lyft wrote in a blog post.

“We are continuing to focus on the people behind our business, making sure to take care of our drivers, passengers and team members,” Lyft wrote. “We have big plans on the horizon, and will continue investing in new technology and hospitality in order to create experiences that passengers and drivers will love.”

While Lyft is lining its pockets, its much-larger rival Uber is faltering. After a string of scandals and setbacks, including accusations of sexual harassment within the company and a lawsuit accusing Uber of stealing competitor Waymo’s self-driving car trade secrets, Uber lost its head of PR on Tuesday.

Lyft’s fundraising plans leaked in early March, with insiders reporting that the company intended to raise at least $500 million at a valuation of between $6 and $7 billion.

Image: The light-up sign Lyft drivers display in their vehicles. (Courtesy of Lyft)

 

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