Uber Competitor Lyft Eyes $150 Million in New Funding The San Francisco-based company known for the pink mustaches adhered to the front of the cars in its network is looking to close in on its fourth round of fundraising.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Ridesharing company Lyft just got a serious financial lift.

The San Francisco-based, on-demand car share service has secured $80 million in fresh venture capital funding, sources tell Recode. That's a hefty chunk of the $150 million the company is looking to raise this round, according to documents filed this week in Delaware.

This most recent round of fundraising is Lyft's fourth. The previous three rounds brought in nearly $83 million total, according to venture-capital database CrunchBase.

Related: Zipcar Founder: Entrepreneurs Have to Build a Collaborative Economy, or Else

Lyft, which competes with Uber, arranges for pre-screened drivers to pick up people who need rides. Drivers in the Lyft community go through a phone interview, an in-person interview, background and DMV record checks before becoming registered. People who need rides check a mobile application to find a Lyft driver nearby. When a ride is complete, passengers are prompted to make a donation to the driver for the service. Lyft takes 20 percent of the donation as a fee.

The Lyft model has a playful and community-oriented feel. Cars that are part of the service don bright pink, fluffy mustaches and passengers and drivers are encouraged to "fist bump" when they get in the car. Check out the Lyft video below to hear from people who use the service.

In addition to its playful, community feel, Lyft is defined by its priority of being a mobile web application first. Currently, Lyft is in 24 cities in the U.S. from Atlanta to Baltimore to Seattle and Phoenix. Lyft officially launched in June of 2012, but it was built out of another ridesharing company, Zimride, which was born in 2007.

Related: Car-Service Company Uber Reportedly Valued at $3.5 Billion

The recent round of fundraising reportedly values Lyft at as much as $700 million. And while the 9-figure deal is eye-popping, it's still a far cry from the $3.5 billion valuation of competitor Uber. With Uber, passengers order and pay for rides entirely on their mobile device. Pricing for rides through Uber varies depending on supply and demand.

Lyft could not be immediately reached for comment.

Related: Uber Competitor Sidecar Now Lets Drivers Set Their Own Prices

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Solutions

Say Hello to the PDF Multi-Tool You Didn't Know You Needed

Get lifetime access to UPDF for just $47.99—the best price online right now.

Business News

Zillow Predicts These 10 Places Will Have the Hottest Housing Markets in 2025

Zillow predicted that the hottest housing market of 2025 will be Buffalo, New York. Here's why.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business Culture

It's Time to Rewrite Your Company's Values — Here's How

Most companies' values are forgotten or disconnected from daily operations. By rethinking and co-creating values with your team, you can transform them into actionable tools that align behavior, build trust and drive performance.

Business News

These Are the 10 Highest-Paying Jobs That Only Require a 2-Year Degree — With Some Around $100,000 and Higher

People with two-year degrees may see career growth in the healthcare, aviation, and technology industries over the next 10 years, according to a new report.