Lyft will raise $1 billion to compete with Uber image

The latest ride-hailing app on the U.S. market, Lyft, will raise around $1 billion in a Series F founding round a few weeks after Uber had announced it would raise a double sum reaching $2.1 billion.

Forbes got its hands from the market data provider VC Experts on a new Delaware filing that authorizes 37,328,893 new preferred shares worth $26.79 each. Justin Byers, director of business intelligence at VC Experts, said that Lyft will be valued at $4.8 billion after its planned $1 billion is to be added to the company. The raising found also has a ratchet meant to adjust shares in case of a smaller round or IPO.

The San Francisco start-up has become one of the top 25 largest private venture-backed firms in the world this year, but it is still surpassed by the notorious Uber, which, based on its latest funding round, has become 12 times as large as the Lyft app.

However, the two hail-riding apps have different business goals. Uber is focused on fighting competition in major markets like China and India, while Lyft is set only on the United States markets by partnering with foreign similar business enterprises. In a matter of fact, Lyft has announced this month that it would partner up with Didi Kuaidi from China, Ola from India and GrabTaxi from Singapore, all mobile apps for ride-hailing.

John Zimmer, co-founder and president of Lyft, stated for Forbes that “This is the next major step in what we’re doing in global ride sharing. For us, in these geographies – China, Indian, and Southeast Asia – partnering is the smartest international expansion strategy.”