Lyft Inc. said its recent funding round is growing 50 percent to $1.5 billion, giving the ride-hailing startup more financial firepower to compete with its larger, troubled rival Uber Technologies Inc.
The round, led by Alphabet Inc.’s CapitalG investment unit, brings Lyft’s valuation to $11.5 billion, after the new cash injection, the startup said in an emailed statement.
Fidelity Investments, an Uber backer, and the Ontario Teachers’ Pension Plan took part in the latest round, along with existing investors including AllianceBernstein, Baillie Gifford, KKR, Janus Henderson, and Rakuten, Lyft also said.
Lyft has gained significant market share in the U.S. this year after Uber’s reputation was left in tatters following a string of scandals that culminated with the resignation of its chief executive officer.
“We will continue to invest in our community and look forward to an even bigger 2018,” Lyft co-founder John Zimmer said in a statement.