Coming up on the one-year anniversary of its ridesharing service, Lyft is celebrating with a new round of funding worth $60 million.
Known for the bright pink mustaches on the grill of its drivers' cars, Lyft is a service that lets smartphone users call drivers to their locations for rides. Using their own cars, the drivers take users wherever they need to go, much like a taxi service. At the end of the ride, the Lyft app suggests how much money users should donate to their driver. The transaction happens electronically through the app.
The service launched last June in San Francisco, but has been growing and expanding to more cities. In January, it launched in Los Angeles, and most recently, it launched in Chicago earlier this month. Lyft also operates in Seattle.
But now with the funding, led by venture capital firm Andreessen Horowitz, Lyft may be able to expand to more cities and add more drivers faster than before. The company's chief executive, Logan Green, who attributes his obsession with transportation to growing up in Los Angeles, said the funding is "the ultimate kind of validation" for Lyft.
"It's a big vote of confidence from the top VC firm in the world," Green said. "They understand and are incredibly excited about the peer-to-peer-sharing economy, so I think they 'got' this business."