Lyft Raises $1 Billion from Alphabet Investment Fund

Lyft Raises $1 Billion from Alphabet Investment Fund

Lyft and Waymo (Alphabet's self-driving auto division) struck up a partnership earlier in May, and Alphabet choosing to lead Lyft's campaign in raising $1 billion reiterates Alphabet's dedication to remaining on as much of Lyft's good side as it can.

The news isn't all that surprising considering Alphabet's self-driving auto unit Waymo in May announced a partnership with Lyft to bring autonomous vehicle technology to the masses. Google's parent company, Alphabet Inc., is throwing its financial support behind ride-hailing service Lyft, deepening its rift with market leader Uber.

The investment from Alphabet could provide a boost to Lyft as its battles Uber for market share in the USA and would also enable Lyft to ensure its independence for the near future.

The ride-sharing company on Thursday confirmed that CapitalG is leading a $1 billion financing round in Lyft following rumors about the deal last month.

Lyft remains a distant second to Uber, both in terms of market share and valuation. The investment brings Lyft's post-money valuation to $11 billion.

Reuters in September reported investment talks between the companies.




It has also been expanding its partnerships including with General Motors and the former Google Car unit now called Waymo.

Lyft also points out in its blog post that less than 0.5% of the USA population actually uses ride-sharing services, meaning that room for growth is substantial.

Google parent company Alphabet's investment arm CapitalG is making a big bet on Lyft. A trial to decide the issue has been delayed until early December. GV invested in Uber in 2013, but then Uber began to develop autonomous cars and compete directly with Alphabet.

David Drummond, an SVP at Alphabet, left Uber's board in 2016 citing "the overlap between the two companies".

The deals come as Waymo accuses Uber of using autonomous technology that allegedly was stolen by an ex-Google engineer.

Even before the investment, Google had begun to align itself with Lyft.

Related Articles

  • North Korea threatens 'unimaginable' strike on United States

    North Korea threatens 'unimaginable' strike on United States

    Ambassadors to the UN vote during a United Nations Security Council meeting on North Korea in New York City on September 11, 2017. The exercises are the latest instance of U.S. military hardware movements around the Korean peninsula.
    Canadian rock legend Gord Downie dies at 53

    Canadian rock legend Gord Downie dies at 53

    A statement on the band's website said he died Tuesday night "with his beloved children and family close by". Its discography sold more than eight million copies, appealing to partiers and intellectuals alike.
    Storm Ophelia destroys stadium roof of Irish cup holders Cork City

    Storm Ophelia destroys stadium roof of Irish cup holders Cork City

    Already the storm has claimed the life of one person. "At the same time, much of northwest Scotland has been removed". Permanent TSB Group Holdings closed its offices, while some 160 flights have been canceled at Dublin airport.
  • SC Gets Extension From Federal Govt. For REAL ID Compliance

    SC Gets Extension From Federal Govt. For REAL ID Compliance

    Customers are encouraged to begin gathering the required documentation as soon as possible, giving them ample time to prepare. Members of Montana's congressional delegation have introduced legislation seeking to overturn the REAL ID Act .
    Dallas Cowboys, AT&T Stadium to host 2018 NFL Draft

    Dallas Cowboys, AT&T Stadium to host 2018 NFL Draft

    During its three days, draft programming claimed five out of the top 10 spots among sports events, including the No. 1 spot. Rounds 2 and 3 will air Friday night while the final four rounds will take place on Saturday afternoon.
    Seven killed, 22 injured in roadside blast in Quetta

    Seven killed, 22 injured in roadside blast in Quetta

    Earlier in June, 14 people ─ including seven policemen ─ were killed in a powerful blast in Quetta's Gulistan Road area. POLICEMAN GUNNED DOWN: In a separate incident, Police Inspector Abdul Salam was gunned down on Quetta's Qambrani Road.
  • Donald Trump tumbles in Forbes rich list

    Donald Trump tumbles in Forbes rich list

    As a candidate, Trump said his net worth was more than $10bn, but Forbes pegged that figure at $4.5bn in September 2015. The average net worth rose to $6.7 billion, up from $6 billion a year ago.
    Twin Taliban attacks at Afghanistan army base kill dozens

    Twin Taliban attacks at Afghanistan army base kill dozens

    On Tuesday, at least 69 people were killed and scores wounded in Taliban attacks on government compounds in Paktia and Ghazni provinces.
    Amazon Studios Chief Roy Price Resigns Following Sexual Harassment Allegations

    Amazon Studios Chief Roy Price Resigns Following Sexual Harassment Allegations

    The allegations surfaced as revelations of decades of alleged abuse of women by mogul Harvey Weinstein flooded Hollywood. Price was accused by actress Rose McGowan of ignoring her when she reported to him that Weinstein had raped her.
  • United Kingdom  banks exposed to money laundering

    United Kingdom banks exposed to money laundering

    The brothers, who moved to South Africa in 1993, have denied a string of allegations about alleged corruption. Standard Chartered has previously said that it closed the accounts used the in transactions in early 2014.
    Trump's Anti-Iran Rhetoric Isolates US, Not Iran: Commander

    Trump's Anti-Iran Rhetoric Isolates US, Not Iran: Commander

    President Donald Trump for his attempts to row back on the 2015 nuclear deal between Tehran and the global community. Iranian Supreme Leader Ayatollah Ali Khamenei has launched an attack on U.S.
    Suspect in deadly Maryland shooting sought in connection with Del. shooting

    Suspect in deadly Maryland shooting sought in connection with Del. shooting

    Prince is considered to be armed and unsafe , officials said, and he has a criminal history although officials did not elaborate. Prince was sacked from another job earlier this year after he attacked a co-worker, according to The Baltimore Sun .