Lyft this week set out to raise a new round of funding to help it catch up to the massive war chest raised by its rival Uber, sources said.
The ride-hailing company company—which was last valued at $850 million—is in the midst of its efforts, with what one person close to the situation said was a "significantly" higher valuation. Both that and the amount to be raised are still in flux.
Lyft has already raised more than $330 million, which would be significant for any other startup. But that amount is dwarfed by the nearly $3 billion that Uber has collected, with a valuation of more than $41 billion.
Uber operates in more than 260 cities around the world, while Lyft is in just over 60, all in the United States. Lyft is also more focused on the affordable end of the market, with many first-time professional drivers using their own cars.
Uber CEO Travis Kalanick has admitted to meddling with Lyft's last funding round by trying to scare off potential investors.
According to sources, Lyft's latest funding efforts are going well. However, with all the funding Uber has raised, Kalanick also seems to have succeeded in cornering some of the potential investor candidates that competitors like Lyft might have tapped, said Anand Sanwal of investment research firm CB Insights.