Lyft is still a distant second to Uber in the ridesharing wars, but this investment should help the smaller company gain more ground.
Alphabet Inc.’s investment arm, CapitalG, led a $1 billion investment in Lyft Inc. that values it at $11 billion, the ride-sharing startup said Thursday.
The funding marks a major shift in Alphabet’s allegiances away from Uber Technologies Inc., and suggests a tighter pairing of its Waymo autonomous vehicle technology with Lyft’s transportation network.
The new funding round gives Lyft a cash infusion to compete with Uber, which has been reeling from a series of scandals and executive turnover in 2017. Bloomberg previously reported Alphabet was considering a $1 billion investment. The internet giant was a major Uber backer, but the companies have clashed in court over autonomous vehicle technology this year.
David Lawee, a partner at CapitalG, will join Lyft’s board as part of the deal, the company said in a blog.
©2017 Bloomberg L.P.
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Photo Credit: Google parent company Alphabet has led a $1 billion investment in ridesharing company Lyft. Bloomberg