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Lyft is trying to raise half a billion dollars to fund its growth against a cash-flush Uber, The Wall Street Journal reported on Wednesday.
The ride-hailing company is pitching the new funding round at a valuation of $6 billion to $7 billion, The Journal said, citing anonymous sources. Lyft declined to comment on the report.
Lyft needs the cash to continue to cut into market share and grow its business. The company flirted with selling over the summer but decided to stay independent and stick out the fight with Uber.
But Uber has stumbled heading into 2017, and Lyft is seizing the moment to portray itself as the friendlier alternative.
It has lured customers to its service after more than 200,000 people deleted Uber in a single weekend, and now it’s trying to bring investor cash on board. Uber is facing a battle on all fronts as it tries to win back customers, its employees, and even its investor base, which has started speaking out against the ride-hailing giant amid a sexism scandal and investigation into its workplace.
A $500 million infusion would bring Lyft’s total raised to $2.5 billion. Lyft’s closest competitor, Uber, is valued at $69 billion after raising $11.5 billion.