Lyft Gets $1 Billion to Fight Uber With Alphabet-Led Investment

Lyft co-founder Logan Green CapitalG partner David Lawee and Lyft co-founder John Zimmer    
   Lyft

What's also interesting about this deal is that CapitalG was a backer for Uber early on in the company's life.

Alphabet's venture firm Capital G has announced an $1 billion investment in Uber competitor Lyft.

Lyft had raised $600 million at a $7.5 billion valuation in April this year.

Lyft's new valuation is another black eye for Uber, which once boasted a close relationship with Mountain View. The Alphabet arm poured $258 million into Uber back in 2013. But the relationship fractured as Uber started working on self-driving cars in competition with Waymo. Lawee was formerly Google's VP of corporate development.

The big investment comes as Uber and Google's Waymo are embroiled in fierce litigation over intellectual property.




The funding marks a major shift in Alphabet's allegiances away from Uber, and suggests a tighter pairing of its Waymo autonomous vehicle technology with Lyft's transportation network.

Although Uber might have been first to market, Lyft is rapidly making a name for itself in the ride-sharing industry. As sources told Axios last month, the push for Google to invest reportedly came from the highest levels, with executives like C.E.O.

"2017 has been an important year for the Lyft community", the company wrote in a blog post. The ugly infighting among Uber's board has been made public, occasionally by its own board members, and the company is facing stricter regulations and restrictions in cities around the world, including Quebec and London. That company has been valued at as much as $60 billion.

Uber, which has a valuation of almost $70 billion, is widely expected to seal a deal for a major investment from Japan's Softbank, which could allow some stakeholders to cash out.

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