Lyft has raised more than $500m at a valuation of $6.9bn, according to three people familiar with the matter, as investors back the Uber rival’s continued expansion across the United States.

The new valuation represents a 50 per cent increase from Lyft’s previous fundraising round in January 2016, which valued the company at $4.5, excluding the new capital raised.

While still dwarfed by its larger rival Uber, which is valued at $70bn, Lyft has seen its business buoyed by recent consumer boycotts of Uber in the US.

Investors have already backed Lyft with at least $500m in the fundraising, which could still increase to $600m as final investments are sealed.

Lyft’s previous investors include Alibaba, Didi Chuxing, Carl Icahn, and Andreesen Horowitz. The company declined to comment.

Get alerts on Lyft Inc when a new story is published

Copyright The Financial Times Limited 2019. All rights reserved.

Comments have not been enabled for this article.

Follow the topics in this article