Rideshare Service Lyft Raises $60 Million To Bring Pink Mustachioed Cars To More Cities

Watch out, Uber: The year-old on-demand car service just raised a new round of funding to expand its rideshare business.

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.

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  • brothenberg

    If you are thinking about getting into a Lyft anytime soon.. I suggest you do yourself a quick test.. call your own insurance company.. tell them you want to drive for lyft and take fares on your own personal insurance.. they will pretty much cancel you on the spot as taking donations/fares for rides on your personal insurance is fraud.. Lyft's excess policy is only valid when the drivers policy is valid.. hence if you are in an accident and insurance deems a fare of any kind was made, in which the driver had no destination in advance, and has no proof the $ is going towards the shared expense.. the drivers insurance is null.. and he will be personally responsible for you and the other passengers for the rest of his life.. then tell me if you feel safe getting into someones car under current laws? Lyft focuses too much on the driver/passenger experience.. giving people what they want, a non-foreigner cabby, someone who speaks english. but in turn throws vehicle safety out the window.. unlike uber they have no vehicle restrictions and put any old car on the road.. not a green safe new hybrid and the vehicles are seen once and never seen again.. never checked for CELs/Brakes/Tires.. etc.. these companies are also being led by leaders who get banned from the SFO airports and taxi lines and still go.. look on twitter.. for every good post about lyft there are also 1-2 really bad ones.. people who are scared in the cars, drivers who have no clue where they are going.. one driver was pulled over for going down a one way street recently..