Alphabet invests $1 billion in Lyft
- Author: Eleanor Harrison Oct 20, 2017,
Oct 20, 2017, 0:26
Earlier this month, Lyft completed 500 millionth ride and its service is now available to 95% of the USA population - up from 54% at the beginning of the year, the company said in a statement.
'2017 has been an important year for the Lyft community. This year, the two companies have faced off in court over allegations Uber used self-driving auto technology stolen by a former Google employee.
Lyft just raised $1 billion in a funding round led by CapitalG, the investment arm of Alphabet.
Google has chose to take a Lyft.
Those obstacles have taken their toll: while Uber has been valued as high as $70 billion, that number could fluctuate pending an investment deal with SoftBank, the Japanese conglomerate that's been eying a major stake in Uber.
Alphabet also has ties to Uber through its second investment arm, GV. Alphabet sued Uber for stealing its autonomous vehicle trade secrets in a highly publicized case set to go to court in December. But what was a promising partnership quickly turned rocky as Uber and Google became ostensible competitors in the self-driving and transportation spaces. Microsoft invested in Facebook.
Google served as an early and powerful ally for Uber by investing a large sum, getting one of its top execs on the startup's board and promoting the app in Google Maps.
Uber mulled acquiring Lyft back in 2014. The $1 billion Lyft secured in funding on Thursday follows a $600 million funding round in April.
Uber, which has a valuation of almost $70 billion, is widely expected to seal a deal for a major investment from Japan's Softbank, which could allow some stakeholders to cash out.
Interestingly enough, CapitalG is also an early investor in Uber.