Uber and Lyft are racing to raise billion … as investors become sceptical

Uber and Lyft

Ride-hailing rivals Uber and Lyft are racing to raise a combined $1.5 billion by the end of the year, as investors become increasingly sceptical of the lofty valuations attached to Silicon Valley tech companies. Uber is seeking to raise $1 billion and Lyft is aiming for $500 million, as the companies fight to build market share and finance expensive legal and political campaigns to back their business models… Both companies are already among the tech sector’s most aggressive fund-raisers, with Uber having raised more than $10 billion, a record for a US tech start-up… Both companies are heavily lossmaking, which is common among start-ups in Silicon Valley, where growth is prized among early stage businesses… Lyft, which has raised a total of $1 billion, has invested heavily in US marketing as it bids to steal market share from Uber.

 

Leslie Hook and James Fontanella-Khan

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