Business

Lyft Raises $600 Million As Lane Opens With Uber’s Troubles

(Photo by John Sciulli/Getty Images for Lyft)

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Eric Lieberman Deputy Editor
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Lyft, the ride-sharing little brother to Uber, raised a total of $600 million in its latest fundraising round, elevating its post-money valuation to $7.5 billion.

“We are continuing to focus on the people behind our business, making sure to take care of our drivers, passengers and team members,” Lyft’s official blog post announcing the “new capital” reads, likely taking a jab at the backlash Uber has recently received, both internally and externally.

Lyft was hoping to get $500 million in funding, according to recent reports, and increase its valuation to anywhere from $6 billion to $7 billion, so the company has apparently surpassed its own valuation expectations. (RELATED: Devos: School Choice Is Like Having The Option To Take An Uber Or A Taxi)

“We’re welcoming back existing partners like Rakuten and Janus Capital, while also introducing new global partners including AllianceBernstein, Baillie Gifford, KKR, and Canada’s Public Sector Pension Investment Board (PSP),” the blog post continues.

Lyft’s successful cash grab may have been boosted by the number of scandals Uber is currently entangled with.

Lyft reportedly experienced a bump in the U.S. market share after the #deleteUber campaign on Twitter, when people discontinued their Uber accounts for a number of reasons, including because the CEO Travis Kalanick originally was a member of President Donald Trump’s economic advisory council, and following allegations of sexual harassment.

Uber has experienced so many scandals in recent months that it is hard to keep track. Following the many apparent missteps, like a videotaped argument between Kalanick and a driver, the CEO told staffers that he plans on hiring a chief operating officer to help him with leadership responsibilities. (RELATED: Uber Has Another High Profile Resignation)

Lyft appears to be capitalizing on Uber’s struggles. The cofounder indirectly addressed his company’s distinction from Uber.

“We’re woke. Our community is woke, and the U.S. population is woke,” Lyft President John Zimmer told TIME in an exclusive interview in late March. “There’s an awakening … Our vote matters, our choice matters, the seat we take matters. We’re not the nice guys. We’re a better boyfriend.”

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