Lyft is burning through cash. Today, Lyft Inc. has raised a total of $1.5 billion in the recent funding round. The current round of funding is led by Google-parent Alphabet’s investment unit, CapitalG. Lyft is partnering with Fidelity Management & Research Company and Ontario Teachers’ Pension Plan, along with a handful of other existing investors for this new round of funding. This brings the startup valuation to $11.5 billion, after the new $500 million funding, Lyft said Tuesday.
Back in October, the ride-sharing startup received a $1 billion investment from CapitalG. The new cash injection gives Lyft the funding it needs to compete and grab market share from rival Uber. “It’s been a breakout year for Lyft, made possible by our team members, drivers, and passengers,” Lyft President John Zimmer said in an emailed statement. “We will continue to invest in our community and look forward to an even bigger 2018.”
Google was an early investor in ride-sharing giant Uber. Why is Alphabet increasing its investment in Lyft? And does it have anything with recent scandals plaguing Uber? Even Waymo, Alphabet’s self-driving unit, sued Uber earlier this year over the alleged theft of self driving technology. Waymo is seeking $2.6 billion from Uber for the alleged theft of trade secrets. A US Judge granted Waymo trial delay because Uber withheld evidence.
According to report by Fortune, investors are project Lyft could have one-third of the U.S. ride sharing market by the end of 2017.
Lyft is a peer-to-peer transportation platform founded in 2012 to connect passengers who need rides with drivers willing to provide rides using their own personal vehicles. Lyft now operates in 68 cities across the U.S.