One of the recognized ridesharing companies in the United States is in talks with the investors for a new fund raising program that will increase its valuation.
Your friend with the car
Lyft was founded in 2012 by Logan Green and John Zimmer is a leading transportation network startup that is headquartered in San Francisco in California and the company has a customized software application that is developed, managed and operated by them. So the riders can send request to the drivers using the company’s mobile application. Apart from the ride hailing service, the drivers can earn additional income from the food delivery service and transporting the passengers. The Lyft drivers who have their own cars can work with the ridesharing company and those who do not own a car can rent a car and drive for the company.
The on-demand ridesharing service initially offered short trips within the cities in the United States of America and because of the potential service provided to the customers, the company became the second largest ridesharing company in the country.
The passengers must download the ridesharing app from the App store and Google Play store and register with the service by providing the details like the phone number and a valid payment like the PayPal or Google Wallet account or credit card. One confirmation of the ride request, the passenger receives the basic information of the driver like their name, ratings given by previous riders along with the photo of the car and the driver.
To build the driver passenger relationship, they can include additional information in the profile, like their hometown, favorite music and other details. At the end of the ride, the passengers can also offer gratuity to the drivers and it will also be billed in the rider’s payment method.
Types of ride
The ridesharing company offers different types of rides to the passengers depending of their requirement.
Lyft: This is the basic type that matches with the riders in the nearby location
Lyft Line: This type of ride is not available in all the cities. However, it is the cheapest option in the ridesharing service that matches the person with other riders going in the same direction.
Lyft Premier: This is the ride option that comes with a luxury car
Lyft Plus: Choosing this option matches the passenger with a six seater car
The safety option
The safety features followed by the ride sharing company is also an added reason for the popularity of the ridesharing service in the United States. And the service has built a trust among the riders using the service because all the drivers undergo a series of screening process, like the
- Zero tolerance alcohol and drug policy
- Personal interviews with the company drivers who in service
- The Department of Motor vehicle, personnel type criminal background checks and sex offender registries in the US. The criminal background certification consists of records of the past 7 years that includes both the county and national level database that includes the national sex offender registries.
- The drivers those who wish to work with the ridesharing service must be of twenty one years and above and must have had their license for atleast one year.
The company has an option that allows both the drivers and the riders to rate each other so that they can rate the person depending on their riding experience, and driver who has low rating is immediately dropped from the service.
Financial status of the ridesharing company
The company values $5.5 billion and by January 2016 the company had raised more than two billion dollars from various investors like General Motors offering five hundred million dollars and other investors are GSV Capital, Didi Kuaidi, Andreessen Horowitz, Floodgate, Fontinalis Group, Third Point ventures, Founders Fund, Alibaba, Icahn Enterprise, Coatue Management, Fortress, fbFund, Mayfield, Rakuten, Prince Alwaleed’s Kingdom Holdings Company, Janus Capital Management, Tencent and K7 Ventures.
Financial history: The Company completed the sixty million Series C venture funding round in May 2013 that was led by Andreessen Horowitz and other investors like Floodgate Fund, Founders Fund, K9 Ventures, and Mayfield Fund. And in July the same year it sold its Zimride, another app of the ridesharing company to the Enterprise holding- which is the parent company of the Enterprise Rent A car that allows the ridesharing company to focus on its growth.
In April 2014 it completed a two hundred and fifty million dollar in the Series D round that was led by Andreessen Horowitz, Coatue, and Alibaba and by including the fund the company raised $332.5M and five hundred and thirty million dollars was invested by Rakuten Inc, the Japanese online retailer investor. In 2015 March received an additional investment of one hundred and fifty million dollars and the company that was led by the $100 million investment from Carl Icahn and it rose to one billion dollars and in May 2015 the valuation reached to $2.5 billion.
In January 4, 2016 the car sharing company announced its business partnership with the General Motors, the market giant of the United States that has invested five hundred million dollars as a part of the one billion fundraising program. The partnership between the two leading companies of the United States helps in accelerating the car sharing industry and self driving car technology. The Saudi Arabian investment by Prince al- Waleed bin Talal includes the one hundred and forty eight million dollars the existing stock from Founders Fund and Andreessen Horowitz.
Seeking for a new funds in the market
At present, the ridesharing company is seeking for new opportunities in the venture market so as to raise the valuation to six billion dollars and even might rise to seven billion dollars. As of now the company values $5.5 billion in 2016after the investment of one billion dollars led by GM, However it is not clear on the ridesharing company with the new investment plans.
The new fundraising will also boost the ridesharing company according to the present scenario, as the ridesharing giant- Uber is facing internal issues. The CEO of the Uber ridesharing device is under investigation in this year for his participation in the economic advisory Council for the new President of the United States of America, Donald Trump. And hence traditional riders of the company are leaving the service and moving to Lyft.
For many years, Lyft has been working as the underdog to the ridesharing giant. Uber is an international company, while Lyft operates only in the United States of America. Earlier, bother the ridesharing company has bad mouthed each other in the pricing wars. On trying to gain potential buyers, the company in August last year had talks with Apple, Amazon, Didi, Amazon, General Motors and Uber, but failed to accomplish positive deals.
The ridesharing company’s brand is recently looking for various new funding options to attract investors and the car sharing company’s app is soar to the top of the Apple’s App Store and download list. According to the present market scenario, the Lyft car sharing company has potential chances to raise more funds in the upcoming fund raising program.
Author Bio: Anand Rajendran is CEO and Co-Founder of Dectar, best PHP scripts development company located in India. Dectar is a part of Casperon Technologies is a leading social and mobile development company which has launched a Taxi Dispatch Software called Cabily . I’m a Tech geek, Digital marketing expert, Entrepreneur, and Atheist who loves to write everything about PHP Scripts and mobile application development.