Lyft Inc. has raised US$1 billion in fresh financing in a round led by one of Alphabet Inc.’s investment funds, dealing a blow to rival Uber Technologies Inc., Reuters reports.
The round was led by CapitalG, the growth investment fund of Alphabet that has also backed large private tech companies such as home-renting platform Airbnb and payments firm Stripe. Six months ago, Lyft raised US$600 million from a conglomeration of investors. Lyft said the latest round boosts its valuation to US$11 billion from US$7.5 billion.
CapitalG partner David Lawee will join the company’s board, Lyft said, bringing it to a total of 10 directors.
“Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth,” Lawee said in a statement.
Lyft, which runs a distant second to Uber, has pushed expansion this year. The company says it is available across 41 states and completes more than a million rides a day
Lyft is deepening ties to Alphabet despite its partnership with General Motors Co, which has invested US$500 million. GM president Dan Ammann told Reuters this week that any further plans to collaborate with Lyft were “not defined at this time”.
Lyft is close to hiring an initial public offering advisory firm, the first concrete step by the company to become publicly listed.
This funding round may delay those IPO plans, however, as the capital will allow Lyft to continue growing its business privately.
“We will go public when it’s right for us,” said Lyft spokeswoman Alexandra LaManna.
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