(Reuters) - (This March 1 story has been refiled to correct paragraph four to say Qatalyst Partners was retained to assist with a possible acquisition instead of fundraising.)
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.
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A Lyft spokeswoman declined to comment.
Lyft's fundraising efforts have been ongoing for months, according to sources with knowledge of the matter. The company previously retained Qatalyst Partners to assist in reviewing an acquisition offer.
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)