Lyft is out pitching to investors while competitor Uber surrounds itself in controversy.
The Wall Street Journal first reported that they are chatting about a $500 million round. We’re hearing that they are targeting a roughly $6 billion valuation, slightly above the $5.5 billion they were valued at in their last private round.
The timing makes sense given the failed sale process last year , and while its likely coincidental, it won’t hurt that Uber is in the midst of a never-ending PR nightmare. Lyft has often been branded as the underdog and the friendlier of the two companies.
It’s been a little over a year since Lyft raised its $1 billion round from General Motors, but at the rate on-demand companies burn through capital, it never hurts to have more money in their coffers. The Information reported that the company lost $600 million last year after generating $700 million in revenue.
Lyft has raised about $2 billion in total from a long investor list which includes Andreessen Horowitz, Floodgate and Carl Icahn’s investment team. This pales in comparison to the roughly $13 billion at almost a $70 billion valuation that Uber has generated, but Lyft’s business has been U.S.-centric.
We’ve also been hearing that Lyft casually explored IPO possibilities, but is not yet close to making a decision. If the company does not get acquired for a price that exceeds its latest valuation, then then it would especially make sense for them to go down that path.
Lyft declined to comment.
Featured Image: lyft
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