Reportedly Lyft Looking forward to a Round of $500 Million Fund Raising

Reportedly Lyft Looking forward to a Round of $500 Million Fund RaisingJohn Zimmer, Lyft's president announced that in October the ridesharing company attained an annualized gross revenue rate of $1 billion.

The figure is probably not the cut of the value Lyft receives for the rides which flows into its system but most probably it is the representation of the gross payments which its drivers and riders get.

Lyft, which acts as a middle person which gets a cut from the rides is estimated to take twenty percent which coincides with its rival Uber.

Still sometimes it is reported that Uber takes a larger chunk in certain contexts. Lyft drivers at times have reported that in certain occasions, if they drive a fixed number of hours every week, the cut that the company takes is refunded.

At a time when the fund-raising environment is much talked about especially for the young start-ups, there are fresh talks in the ride-hailing sector.

Reportedly, Lyft is seeking to raise new capital, four just like Uber. Both the companies have ramped up talks with investors regarding a round of private fund-raising.

Sources said, San Francisco based Lyft is seeking approximately $500 million with an approximate valuation of $4 billion. It's a leap from Lyft's latest valuation of around $2.5 billion. However, the sources said that the figures may change with fund-raising discussions still on the go.