Ride-sharing app Lyft raises $250M, bringing total funding to more than $330M

SAN FRANCISCO, CA - JANUARY 21: A Lyft customer gets into a car on January 21, 2014 in San Francisco, California. As ridesharing services like Lyft, Uber and Sidecar become more popular, the San Francisco Cab Driver Association is reporting that nearly one third of San Francisco's licensed taxi drivers have stopped driving taxis and have started to drive for the ridesharing services. (Photo by Justin Sullivan/Getty Images)

Ride-sharing app Lyft confirmed a $250 million Series D investment via a blog post on Wednesday. The round included participation from existing investors Andreessen Horowitz, Founders Fund and Mayfield, as well as newcomers Cotue and Alibaba.

This brings Lyft’s total raised to date to more than $330 million. Lyft says it will use the money to aggressively grow its presence in the United States, as well as scale the product internationally.

Formally launched in 2012 (although it previously existed as an extension of Zimride, which was founded 2007), Lyft has expanded to 30 American cities within the last year, though that number remains lower than its main competitor, Uber, which currently serves more than 40 American cities and 35 countries.

Uber has raised more than $307 million since it was founded in 2009.

In addition to competition from Uber, Lyft will also face new hurdles in expanding internationally — including local rideshare systems, regulatory issues and cultural friction. Uber’s already made headway in destroying these barriers — a prime opportunity for Lyft to ride the momentum and expand much faster.

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