In what has been a difficult week for the cab-hailing app Uber, its rival Lyft looks to be taking advantage of the bad news.
According to the Wall Street Journal, Lyft is trying to raise half a billion dollars to fund its growth in order to take on its competition.
Timeline for Apps
- October 9, 2017
It is pitching the new funding round at a valuation between $6 -$7bn.
It wants to cut into Uber’s monopoly of the market share and grow its business.
Unlike Uber, Lyft is only based in the US, in around 200 cities across the country.
Its major rival on the other hand, is based in 538 countries around the world so Lyft does have quite far to go to catch up to it.
The company has had a pretty good start to 2017.
After Uber lifted surge pricing at JFK Airport due in January in response to protests over US president Trump’s Muslim travel ban, #deleteuber was trending on social media with around 200,000 users taking action to remove the app.
The hashtag was given a new lease of life last when sexual harassment allegations came out against the startup
If Lyft secures the new funding, which would bring its total raised to about $2.5bn, it might be the push it needs to be a serious contender to Uber.
These are the other Uber rivals you need to know about
1. BlaBlaCar, Europe
The State of Technology This Week
BlaBlarCar is a true example of the sharing economy. Unlike Uber where drivers are paid separately, this app is car-pooling made bigger. It was founded in 2006 and originated in France. In September 2015 the startup was valued at $1.6bn.
2. Grab, SE Asia
This Southeast Asian-based app is Uber’s major rival in the region. Earlier this month it said it will invest £700m to expand in Indonesia over the next four years, including opening a new research and development centre and hiring Indonesia’s former national police chief to oversee corporate governance.
3. Karhoo, UK
Karhoo died a quick death after only six months in the UK. A price comparison service for black cabs, Karhoo is coming back thanks to investments from the financial arm of Renault. According to TechCrunch, the plan is to open for business globally this year, however, no official launch date has been set.
4. Ola Cabs, India
In a market for 1.3bn customers, Uber was not going to be the one to dominate. Ola Cabs and the Silicon Valley-based startup have been battling it out in India for the past few years however, Ola claims to have around 60 percent of the market share. It is valued at around $5bn.