logo
Share SHARE
FONT-SIZE Plus   Neg

Lyft In Talks For $1 Bln Investment From Google Parent Company

Alphabet-Lyft-091517-lt.jpg

Alphabet Inc. (GOOG,GOOGL) has held talks with Lyft Inc. about a potential investment of $1 billion in the ride-hailing company, according to media reports citing people familiar with the matter.

The investment may reportedly come from Google or Alphabet's private equity arm, CapitalG. Alphabet is already a shareholder in Uber Technologies, Lyft's largest rival, through its investment arm GV.

However, Alphabet's self-driving car unit Waymo is currently suing Uber for alleged use of stolen Waymo trade secrets to develop Uber's self-driving technology, thus complicating the relationship between Alphabet and Uber.

In addition, Waymo and Lyft announced a partnership in May to develop new autonomous vehicle technologies. The companies said that under their partnership, they would work together on new self-driving products and pilot projects.

Lyft is in competition with Uber among ride-hailing services in the U.S., while Waymo is competing fiercely with Uber in the creation of technology for autonomous cars.

An investment from Alphabet could provide a boost to Lyft as its battles Uber for market share in the U.S. and would also enable Lyft to ensure its independence for the near future. Lyft is currently in an expansion mode in the U.S. and is now available in 40 states.

In April, Lyft raised $600 million in a new round of funding, boosting its post-money valuation to about $7.5 billion.

The news about Alphabet's potential investment in Lyft comes as Uber attempts to recover from a series of crisis that resulted in the ouster of its Chief Executive Travis Kalanick as well as other top executives.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

comments powered by Disqus
Follow RTT