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Lyft storms ahead with expansion plans as Uber stumbles

Lyft Driver Gabriel Gill- Austern, left, gets a fist bump greeting from customer Dan Luria as he enters the car. Gill-Austern, is a student at Boston College Law.
Suzanne Kreiter | The Boston Globe | Getty Images
Lyft Driver Gabriel Gill- Austern, left, gets a fist bump greeting from customer Dan Luria as he enters the car. Gill-Austern, is a student at Boston College Law.

As Uber grapples with one public relations disaster after another, Lyft is taking advantage of its ride sharing rival's epic stumbles.

The no. 2 in ride-hailing company in the U.S. launched in 10 new cities Wednesday. The roll-out completes the company's plan to expand its service into 100 new markets this year — nine months ahead of schedule.

With this new expansion, Lyft will compete with Uber in even more markets and continue to put pressure on prices, something CEO Travis Kalanick complained about to an Uber driver in this leaked video.

While Uber is seeking a Chief Operating Officer to help fix its problems, Lyft is seeking additional funding to further the fight.

The company is looking to raise $500 million in financing, according to a person familiar with its plans not authorized to speak publicly. (This latest funding round was first reported by The Wall Street Journal.)

Lyft's market share had been stalled at roughly 16.5 percent over the past nine months, but has crept up to 21 percent, according to TXN Solutions which looks at credit card transactions.

The gains followed the #DeleteUber campaign, which took hold Jan. 28, and an explosive blog published Feb. 20, in which a former employee detailed allegations of gender bias and sexual harassment at the company.