Lyft boosts round to $1.5 billion, led by Alphabet unit

Lyft Inc said its recent funding round is growing 50% to $1.5 billion, giving the ride-hailing startup more financial firepower to compete with its larger, troubled rival Uber Technologies.

The round, led by Alphabet Inc’s CapitalG investment unit, brings Lyft’s valuation to $11.5 billion, after the new cash injection, the startup said Tuesday in an emailed statement.

Fidelity Investments, an Uber backer, and the Ontario Teachers’ Pension Plan took part in the latest round, along with existing investors including AllianceBernstein, Baillie Gifford, KKR, Janus Henderson, and Rakuten, Lyft also said.

Lyft has gained significant market share in the U.S. this year after Uber’s reputation was left in tatters following a string of scandals that culminated with the resignation of its chief executive officer.

A private investor document obtained by Bloomberg projected Lyft would stop losing money for the first time in 2018. However, the startup has ramped up spending more recently to take advantage of Uber’s weaker position.

“We will continue to invest in our community and look forward to an even bigger 2018,” Lyft co-founder John Zimmer said in Tuesday’s statement.

Read: Lyft raises $1 billion from Alphabet to battle Uber

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Lyft boosts round to $1.5 billion, led by Alphabet unit