Google parent Alphabet will invest $1bn in Uber rival Lyft, shifting alliances
Alphabet, search engine giant Google’s parent company, is set to invest $1bn into ride-sharing firm and fierce rival to Uber, Lyft. The investment will come from Alphabet’s investment arm, CapitalG.
This investment, announced on Wednesday, will make Lyft worth $11bn overall.
Earlier this year, Alphabet’s self-driving car development subsidiary, Waymo, partnered with Lyft in the hope that the two companies could put driverless Bolt electric cars on the toads of San Francisco by 2018.
In addition, Lyft also has deals with Jaguar Land Rover and Ford. General Motors invested $500mn in the company in 2016.
Google is already heavily involved in the ride-hailing industry with $250mn having been invested in Uber by Google Ventures in 2013. This led to Alphabet’s David Drummond joining the board.
However, relations with Uber soured in the past few years as Waymo sued Uber for theft of intellectual property, and Drummond has since left the board.
Now, Google’s preference for Lyft could make it an even more dangerous rival for Uber.
Capital G partner, David Lawee, will join Lyft’s board as part of the billion-dollar investment.
Notable investments by Capital G in recent years include Airbnb and Snap Inc in November 2016.
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