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Lyft Uses $250 Million Injection to Expand to 24 New Cities

Apr 24, 2014 2:30 pm

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Tomorrow’s news headline in 24 markets: “Traditional Taxi Companies Raise Complaints About Unlicensed Drivers.”

— Jason Clampet

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JD Lasica  / Flickr

Lyft CEO and co-founder Logan Green. JD Lasica / Flickr


$250 million of venture funding can buy a lot. And alternative-cab company Lyft is using its recent cash infusion to open up its service in lots more American cities.

Today the company announced it is expanding into medium-sized cities and regions around the U.S., like Corpus Christi, Texas; Lincoln, Neb., and Spokane, Wash. It’s a big step forward after the company announced several one-city expansions over the past few months.

The move will bring Lyft closer to major competitor Uber, which has brought on extensive funding and entered medium-sized and large cities around the U.S. and in other countries. These two companies and others, like Sidecar, have been trying to compete in terms of price, insurance policies, and other characteristics.

Related Story: How Big Can the New Wave of Cab Companies Really Get?

Meanwhile, by rolling out cars in many more cities, Lyft could be in for some serious regulatory challenges. Lyft has been fighting to keep its drivers active in cities like Seattle and St. Louis.

And it’s interesting to note that while Lyft is entering some markets where Uber already offers service through its mobile app — including Ann Arbor, Mich.; Fresno, Calif; Jacksonville, Fla.; and Modesto, Calif. — it’s also beating Uber to a number of cities, like Buffalo, N.Y., and Spokane, Wash.

Here’s the full list of new cities where Lyft will be launching in the next 24 hours:

Albuquerque
Ann Arbor
Buffalo
Colorado Springs
Corpus Christi
Fairfield County & New Haven
Fresno
Jacksonville
Kansas City
Lexington
Lincoln
Louisville
Memphis
Modesto
North Jersey
Oklahoma City
Omaha
Raleigh Durham
Rochester
San Bernardino
Spokane
Toledo
Tulsa
Virginia Beach

This article originally appeared on VentureBeat

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