Published: Sat, September 16, 2017
Economy | By Melissa Porter

Alphabet considering $1 billion investment with Lyft

Alphabet considering $1 billion investment with Lyft

Look out Uber. Sources claim Alphabet is now in talks about making a major investment in ridesharing company Lyft, something that will be done through either Google or CapitalG. The investment looks set to be a total of $1bn, with the capital coming from Google or Alphabet's private equity firm CapitalG. Lyft has a big uphill battle to deal with from their competition with Uber.

Uber appointed a new chief executive, former Expedia CEO Dara Khosrowshahi, in late August after a string of scandals.

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In the course of recent months, Lyft has quickly expanded its operations in the United States and is presently looking to Canada, as indicated by The Information. Lyft is currently in an expansion mode in the USA and is now available in 40 states. Lyft already has a partnership with Alphabet's Waymo self-driving auto division.

Google's self-driving auto spinoff company is called Waymo and back in February they filed a lawsuit against Uber.

While the relationship was deteriorating, Waymo signed a pact with Lyft to be a partner on the testing of autonomous vehicles. If such a deal goes through, though, it could be a major boost for Lyft, which has always been a distant No. 2 to Uber in size and in war chest.

A Wall Street Journal story on Thursday said the Japanese company Softbank is weighing an investment in Uber that would put its stake as large as 22%.

Back in 2013, Google has invested in Uber and Now the company is showing interest in buying some part of its biggest rival.

Lyft has as of late been concentrating on controlling spending, and thusly, an Alphabet speculation would help the San Francisco startup support development by offering endowments to drivers, rebates to riders et cetera. Uber's current valuation is about $68 billion.

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