Uber rival Lyft looking to raise $500 million fresh funds: source

A driver displays Uber and Lyft ride sharing signs in his car windscreen in Santa Monica, California, U.S., May 23, 2016. REUTERS/Lucy Nicholson/Files

(Reuters) - Uber competitor Lyft is pitching investors on a new funding round and hopes to net at least $500 million, according to a source familiar with the matter.

The $500 million fundraising would value the ride-hailing service between $6 billion and $7 billion, the source said.

A Lyft spokeswoman declined to comment.

Lyft's fundraising efforts have been ongoing for months, and the company retained Qatalyst Partners in part to assist them in raising a fresh round of cash, according to other sources with knowledge of the matter.

Larger ride-hailing competitors, Uber and Didi, have raised so much money that Lyft's options of finding new investors who can write big checks are quite limited.

Uber is valued at about $70 billion and Didi's valuation is about $35 billion after its merger with Uber's China operations in August.

(Reporting by Heather Somerville in San Francisco and Sangameswaran S in Bengaluru; Editing by Amrutha Gayathri)