News: Uber rival valuation expected to hit $4.5bn.
Ride-hailing firm Lyft is planning to raise about $1bn in in a new round of financing in order to compete with its rival Uber Technologies.
Citing a Delaware state filing, Bloomberg reported the company’s document did not indicate how much had been raised, who was investing in the round or list a valuation.
The latest round included some downside protection for new investors, with a plan of extra shares if Lyft files for an initial public offering at a lower valuation.
Lyft currently operates in around 150 US cities. The company has over a 40% market share in San Francisco and 45% in Austin, Texas.
The company plans to reach $1bn in gross annual revenue. Lyft has already raised over $1bn from investors including Carl Icahn, Rakuten, Coatue Management, Alibaba, Andreessen Horowitz, Fortress, and several others.
In September, Lyft partnered with China’s Didi Kuaidi to tackle Uber’s rapid expansion. The international alliance will allow users of each app to hail drivers who are operating on the other company’s app.
The companies have expanded their global ridesharing partnership earlier this month by bringing in Singapore-based GrabTaxi and India’s Ola.