As the chaos at Uber intensifies, its smaller ride-sharing rival sees an opening.
Lyft, Uber’s San Francisco-based archrival, is pitching investors on a new funding round and hopes to net at least $500 million, a source told Reuters.
The $500 million fundraising would value the ride-hailing service at between $6 billion and $7 billion, the source said.
The efforts come as Uber has endured a slew of bad publicity, most recently from a testy exchange between CEO Travis Kalanick and a driver that was caught on video.
A Lyft spokeswoman declined to comment.
Lyft’s fundraising efforts have been ongoing for months, according to other sources with knowledge of the matter.
Larger ride-hailing competitors Uber and Didi have raised so much money that Lyft’s options for finding new investors who can write big checks are quite limited.
Uber is valued at about $70 billion and Didi’s valuation is about $35 billion after its merger with Uber’s China operations in August.
Still, in January, disgusted customers started the #DeleteUber campaign after learning that the company kept sending cars to JFK Airport — where numerous refugees were being detained — while the taxi industry was boycotting.
Last week, Uber hired former US Attorney General Eric Holder to conduct a review of a former employee’s claims of sexual harassment at the ride-hailing service.


