Ride Sharing Company Lyft Raises $60 Million
Lyft is a ride-sharing company that has raised $60 million in Series C funding led by Andreessen Horowitz. Lyft plans on using the funding to accelerate growth and to stay competitive against companies like Sidecar and Uber. Existing investors that participated in this round include Mayfield Fund and Founders Fund. Lyft has raised $83 million in total.
Lyft is seeing around 30,000 rides per week and they were not planning on seeking funding since their last round. Investors were showing a lot of interest and the terms were too good to pass up.
Launched in 2008 through Facebook’s fbFund incubator, Lyft started with the name “Zimride.” When they launched, the company was focused on ride sharing for longer rides between cities like San Francisco and L.A. One year ago, the company launched Lyft to provide ride sharing within cities.
Lyft was able to build trust between users by requiring them to sign up through Facebook. The company also build a strong community between drivers. Lyft currently has routes available in San Francisco, Seattle, Chicago, and L.A. They plan to use the funding for expansion domestically and internationally.
Lyft was recently cleared by the California Public Utilities Commission (CPUC) for ride-sharing usage. The company is not worried about regulatory issues because they have done extensive background checks of drivers and has various safety measures.
Lyft cars are known for having a furry pink mustache on the front of the vehicles. In the spirit of competition, Uber recently launch a campaign called “Shave the ‘stache.”