Lyft filling tank with cash as value revs — Report

SAN FRANCISCO: A fruitful funding round has bumped Lyft’s value to US$ 7.5 billion, as the ridehailing company drives to gain ground on scandal-rocked rival Uber, the Wall Street Journal reported.

Lyft is closing a US$ 500 million funding round in which it saw its valuation sharply spike from about US$ 5.5 billion in previous rounds, according to the paper.

When contacted by AFP, Lyft declined to comment but did not dispute the accuracy of the Wall Street Journal report.

As Uber was dented by controversies in recent months, on- demand ride rival Lyft accelerated expansion and set out to pick up converts by casting itself as a friendlier, more sympathetic alternative.

Uber has been rocked by allegations of sexism, cut-throat workplace tactics and covert use of law enforcement- evading software.

Both companies let people summon rides using smartphone apps, but Lyft has cultivated a reputation as a more socially responsible and driver-friendly version of the service.

Lyft even mocked Uber in an advertising campaign late last year, depicting leaders of an imaginary ‘RideCorp’ firm that appeared to be a reference to its market-leading competitor.

Lyft also took a stand in January against US President Donald Trump’s first anti-immigration executive order, announcing a milliondollar donation to the American Civil Liberties Union to help fund legal opposition. — AFP