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Ride-sharing service gets $60 million boost

Posting in Cities

Despite regulators cracking down on popular sharing services in the United States, potential legal issues don't seems to be scaring away venture capitalists.

Lyft, a ride-sharing startup celebrating its first anniversary this week, just raised $60 million from venture-capital firm Andreessen Horowitz.

Using the Lyft app, customers in San Francisco, Los Angeles, Seattle and Chicago can catch rides on-demand from drivers who have gone through an extensive background and driving record screening. Lyft's tagline: "your friend with a car."

But not all cities have been friendly to services like Lyft. Last year, Lyft (along with Uber and SideCar) was hit with a cease and desist letter requiring them to discontinue their services in San Francisco. Earlier this year they were allowed to continue operating (for now) while evaluations were made about how to regulate these services. New York City has been especially unfriendly to ride-sharing services and just last week RelayRides was forced to halt its New York services.

Fortunately for Lyft and it customers, along with the $60 million boost the company is gaining something money can't buy. According to iTechPost, Lyft will have access to special advisors at Andreessen Horowitz, namely Washington D.C.'s former mayor Adrian Fenty and former U.S. Treasury Secretary Larry Summer, to help navigate tricky city regulations.

Photo: Lyft

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— By on May 24, 2013, 1:27 AM PST

Tyler Falk

Contributing Editor

Tyler Falk is a freelance journalist based in Washington, D.C. Previously, he was with Smart Growth America and Grist. He holds a degree from Goshen College. Follow him on Twitter. Disclosure