US-based ride hailing platform Lyft aims to add $500m of additional funding to the $1bn it raised from internet technology group Alphabet last month, Axios reported today, citing a regulatory filing.
Lyft operates an on-demand, app-based ride service that was responsible for its 500 millionth ride earlier this year, putting it second in the US ride hailing market, behind Uber. The company has reportedly approached bankers to explore an initial public offering in 2018.
Alphabet’s growth equity unit, CapitalG, agreed last month to lead a $1bn series G round for the company, though no other participants have yet been revealed. The extra $500m would be raised at the same $10bn pre-money valuation at which CapitalG invested.
The news comes as Lyft prepares to enter its first international markets, in Canada next month. A company spokesperson told Axios: “Increasing the potential for this round will allow us to further accelerate our commitment to serving passengers and drivers.”
Like Uber and Alphabet, Lyft is also working on autonomous driving technology, and recently secured permission from California’s Department of Motor Vehicles to begin testing the technology on the state’s roads. It launched its own autonomous vehicle division in July 2017.
The $1bn round increased Lyft’s overall funding to more than $3.1bn, with its earlier corporate investors including Chinese peer Didi Chuxing, e-commerce firms Alibaba and Rakuten, and carmakers General Motors and Jaguar Land Rover.
Lyft’s other existing backers include KKR Next Generation Technology Fund, Janus Capital Group, Baillie Gifford, AllianceBernstein, PSP Investments, Kingdom Holding, Coatue Management, Third Point Ventures, Andreessen Horowitz, Founders Fund and Mayfield Fund.