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Lyft just raised $500 million to aid its fight against Uber

Apr 6, 2017, 23:31 IST

Lyft

Lyft just raised $500 million as it looks to grow its cash cushion and take on Uber, the Financial Times first reported Thursday.

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Lyft raised the money at a valuation of $6.9 billion, according to the report. In a follow-up, The Wall Street Journal reported Lyft's post-money valuation is now around $7.5 billion, and its share price increased 20% in the round.

One thing is clear: Lyft's $500 million raise comes at a time when its closest competitor, Uber, is reeling from scandals. Uber has come under fire following allegations of sexual harassment in the workplace. The company is also being sued by Waymo, Alphabet's self-driving-car company, over claims it stole lidar technology.

The latest funding round doesn't necessarily come as a surprise: reports that the ride-hailing service was pitching a new funding round to put it at a $6 billion or $7 billion valuation began surfacing in early March.

A Lyft spokesperson declined to comment on the reports to Business Insider.

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