Lyft is raising another big round as it continues to battle Uber in the ride-hailing industry.
The San Francisco-based company today announced a $600 million round at a $7.5 billion post-money valuation. New investors include AllianceBernstein; Baillie Gifford; KKR; and Canada’s Public Sector Pension Investment Board. Existing investors Rakuten and Janus Capital also participated.
“We are continuing to focus on the people behind our business, making sure to take care of our drivers, passengers and team members,” Lyft said in a statement. “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.”
Total funding to date for Lyft is $2.6 billion. The company previously raised a $1 billion round in late 2015.
The Wall Street Journal and Recode reported about the funding last week and both pinned the amount at $500 million, though both noted that the round hadn’t fully closed. Lyft today confirmed the investment, which came in at $100 million more than previously reported.
In a blog post, KKR Director of Private Equity & TMT Growth Vincent Letteri wrote that Lyft’s market is “poised to grow significantly.” He also noted that “Lyft sets itself apart from the competition” and that “the company’s culture is highly customer-centric.”
“In our analysis, we also saw a mature, focused management team that stands out,” Letteri wrote. “We’ve known John Zimmer for almost three years and watched him thoughtfully grow the business and the Lyft team over time. Lyft’s mission is not about being just a good taxi; it is about revolutionizing the way people fundamentally think about car ownership. Their focus on this mission and on offering a quality experience for both passengers and drivers explains why Lyft is now the fastest growing on-demand transportation service in the U.S.”
The cash infusion comes as Lyft competes with Uber, which has raised $8.8 billion to date. Uber not only has more funding but a larger footprint worldwide, though in light of the company’s recent troubles, Lyft is picking up momentum — last month it was labeled as the “light side ridesharing alternative.” Lyft has launched in 131 new cities thus far in 2017.
