Uber’s hard core rival Lyft is seeking an additional cherry on top funding of $500 million, over and above $1 billion it raised in a round led by Alphabet’s venture arm CapitalG last month.
This has raised the bar of its valuation to $11.5 billion in comparison to previous $7.5 billion. The funding is not yet been closed and this $500 million is an extension of its previous round.
This funding will be utilized to develop its passenger and driver products, the company told the source- Axios.
The funding comes at a critical point where it is trying to expand outside U.S., with a launch scheduled in December in Toronto and Hamilton in Canada.
Lyft has been focusing on its growth this year, aiming to cover 95% of the US population with more than a hundred new market additions.
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“Increasing the potential for this round will allow us to further accelerate our commitment to serving passengers,” said Lyft spokesperson Adrian Dubin.
It’s also touting a milestone of more than 500 million rides and counting, and expanding its autonomous technology testing program. It has also recently acquired a permit from the California DMV for testing on state roads.