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.

See also: 

China tech giant Baidu plans to launch self-driving bus 

Oracle: selling clouds to Asia 

Japan and the business of nuclear protection

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.

Share

Featured Articles

Create C-suite space for the Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 AI predictions for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

Welcome to the new breed of private members' clubs

The pandemic has given birth to a new breed of private members’ clubs where work and play merge, membership and spaces are curated, and community matters

Welcome to the New Age of the CISO

Leadership & Strategy

Making the UAE the world’s strongest digital fortress

Technology

World Mental Health Day – 10 apps to improve wellbeing

Leadership & Strategy