Lyft is a car-sharing/semi-pro taxi service.

How it works: You open an app on your smartphone to summon a driver to take you somewhere. A car with a big, fuzzy pink mustache affixed to its front arrives to pick you up. The person who picks you up is not a professional driver, but another Lyft user.

Lyft, which is only a year old, plans to use the $60 million to expand beyond its current markets.

The funding enters Lyft into more serious competition with Uber and GroundLink, another two startups with apps people can use to summon taxi rides. Uber has raised the most capital of the three, and has the lead in terms of adoption.