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.

 

This article was written by Eric Newcomer from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to [email protected].

Photo Credit: Google parent company Alphabet has led a $1 billion investment in ridesharing company Lyft. Bloomberg