Get out your sunglasses: The violent pink mustaches of the San Francisco-based rideshare service Lyft may soon be cruising down a street near you. The car service, which recruits non-professional drivers and their personal vehicles, has just raised a new $60 million funding round to expand to new cities, led by superstar VC firm Andreessen Horowitz.
Despite Lyft being just one-year-old and operating only in San Francisco, Los Angeles, Seattle, and Chicago, it has now raised a total of more than $80 million—more than one of its most formidable competitors in the on-demand rides market, Uber, which has been around since 2009.
A source tells the WSJ's Digits that the new round of capital puts Lyft's valuation at around $275 million. (Earlier this year, Uber debunked rumors that it was raising a new round of funding at a $1 billion valuation.)
Uber has also seen value in the rideshare model. In the past year, it launched UberX Rideshare in several cities, recruiting non-professional drivers for on-demand rides. Uber CEO Travis Kalanick has said he is looking to launch UberX in one city per week. How will Kalanick determine which cities to expand into? By looking at where its competitors—including Lyft—are experiencing success without being shut down by regulatory officials.