In addition to Iowa City, Ames, Cedar Rapids, Davenport, Des Moines, Sioux City and Waterloo will be affected by Lyft's expansion. Payment is made through the app. The Lyft service launched on Thursday, February 23, 2017 at noon.
To celebrate, new passengers can use the code LYFTLOVE17 to receive $5 off their first ride.
Lyft, founded in 2012, is available in almost 300 cities and has launched in 90 new cities since the start of 2017.
In a statement, Lyft says this is their biggest launch to date.
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While both Lyft and Uber ask customers to rate their drivers and their experience online, Lyft also allows customers to tip its drivers if they like, potentially making it more lucrative for drivers.
Before these latest controversies, Uber had been targeted with the #DeleteUber hashtag over CEO Travis Kalanick's participation on Donald Trump's business advisory council and the company's response to a taxi-driver action during early protests over the president's immigration ban.
Lyft already has drivers running in three cities around the state - Kansas City, Lawrence, and Wichita.
"This is part of a larger year-long expansion across the country", said Lyft spokeswoman Jenna Stokes. She said she only makes about $7 an hour.