Ride-hailing firm Lyft’s value jumps to US$15.1 billion in new funding round
Lyft, which became known for the large pink furry moustaches drivers attached to the front of their cars, has seen its valuation and business grow in the aftermath of scandals that vexed ride-hailing market rival Uber
Ride-hailing service provider Lyft received a vote of confidence from investors in the form of a US$600 million funding round and a markedly higher share price.
Led by existing backer Fidelity Management & Research Company, the new financing round boosted Lyft’s valuation to US$15.1 billion, a company spokeswoman said on Wednesday.
That valuation is slightly more than double the US$7.5 billion figure used when the San Francisco-based company raised US$500 million early last year, when it was gaining ground on rival Uber Technologies.
Fidelity injected more into Lyft after investing late last year in a deal led by Alphabet’s private-equity arm CapitalG that valued the business at US$11.5 billion. Senator Investment Group, a hedge fund, took part in the new round, Lyft said.
The latest funding has made Fidelity one of Lyft’s largest investors, with US$800 million in investment. Other investors in Lyft, which has a 35 per cent market share in the United States, include AllianceBernstein, Baillie Gifford and KKR & Co.
Lyft, which became known for the large pink furry moustaches drivers attached to the front of their cars, has seen its valuation and business grow in the aftermath of scandals that vexed ride-share market giant Uber.