The Companies That Are Funding Uber and Lyft by Stephen Vita

TL;DR - Uber is a lot bigger than Lyft but each has both substantiation investors backing them. Both have gone through multiple rounds of funding valued at billions of dollars.

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Tags - outside capital, startup financing, raising capital, venture capital, VC

Questions answered:

  • What does the VC funding look like for Uber and Lyft?


  • Uber:
  • Although Lyft is still a minnow in the ridesharing business compared to Uber, that hasn't stopped venture capitalists and other investment entities from throwing money at both companies.
  • Uber was founded about five years ago with a killer app concept
  • The concept caught on with the Silicon Valley venture capital crowd; by summer 2015, its total funding reached $10 billion.
  • Google Ventures plunged over $250 million into Uber
  • Biggest investors also include blue-chip Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers, Fidelity Investments, Jeff Bezos of Amazon, Goldman Sachs, Blackrock, Lone Pine Capital, and dozens of other venture capital firms, hedge funds and private billionaires.
  • a monstrously successful initial public offering (IPO) valued at $70 billion or more.
  • In June 2015, Uber's operating loss was revealed to be a staggering $470 million.
  • Lyft:
    • Marc Andreessen, founder of Netscape, has a fractious history of public feuds with Icahn, but he poured $60 million into Lyft
    • In early 2015, Lyft also raised over $500 million in funding from a Japanese venture capital firm.
    • Lyft, lost $127 million during the operational war, although it continues to aggressively raise capital,