Alphabet Inc (GOOGL) Weighing $1 Billion Lyft Investment

Marcus Newton
September 16, 2017

Alphabet has discussed a potential investment with Lyft over recent weeks, showing strong support for Uber's biggest competitor in the United States, according to a Bloomberg report. Google already has a stake in Uber, but is also suing Lyft's ride-sharing rival in an intellectual property dispute. In May, the Mountain View, California-based company's self-driving arm, Waymo, and Lyft announced a partnership created to bring autonomous vehicle technology to the masses.

Sources say that the possible $1 billion investment may come from Google of CapitalG, but there is no confirmation on whether the deal will be completed or not. Lyft and Waymo both confirmed back in May that the two will be combining efforts to create self driving vehicles.

Alphabet since 2013 has been an investor in Uber through its venture capital arm, known as GV. Prior to working with Uber, Didi also had a partnership with Lyft that allowed Lyft customers to hail Didi rides from the Lyft app when they were in China, and vice versa.

Lyft raised $600 million in fresh funding in April, mostly from large global investment funds.

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But a major investment from Alphabet could drive Lyft closer to Waymo.

If the investment pushes through, it will add to the already-heavy plate of problems of Uber and its new CEO. The deal, which could be completed as early as next week, is said to be quite complex, and would entail SoftBank purchasing shares directly from Uber as well as existing shareholders who're looking to cash out, the WSJ said.

Uber is now in the process of trying to secure more funding, with Lyft set to expand into Canada - which would be its first global expansion.

In San Francisco, the company has expanded its shuttle service with a total eight routes, and it has six sroutes in Chicago.

Other reports by MaliBehiribAe

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