Alphabet considering $1 billion investment in Lyft

Alphabet considering $1 billion investment in Lyft

Alphabet considering $1 billion investment in Lyft

While representatives from Alphabet and Lyft have denied a comment on the potential investment, it wouldn't be a surprise if the rumors turn out to be true because the two companies already have a history. Google already has a stake in Uber, but is also suing Lyft's ride-sharing rival in an intellectual property dispute. But Google's self-driving auto unit Waymo sued Uber earlier this year, alleging that a former Google engineer at Uber's self-driving vehicle outfit Otto stole Waymo's intellectual property.

An unnamed source told Bloomberg that Alphabet's investment could amount to $1 billion.

Alphabet since 2013 has been an investor in Uber through its venture capital arm, known as GV. The companies said that under their partnership, they would work together on new self-driving products and pilot projects. Uber also is trying to fend off Lyft, which has gained market share this year. Sources claim Alphabet and Lyft haven't finalized a deal at this time. And although a deal could still fall through, the timing suggests that Lyft is capitalizing on Uber's recent stumbles, taking the opportunity to grow its war chest while its better-funded competitor is busy licking its wounds.

In April, Lyft raised $600 million in fresh funding, increasing its valuation from $5.5 billion to $7.5 billion.

The possible funding initiatives come as Uber tries to rebound from a series of scandals that ultimately led to the resignation of company founder Travis Kalanick in June. Therefore, Lyft still needs to remain on its toes to outdo Uber in the near future. It would allow the company to expand its technology and services.

With Alphabet taking so much interest in the autonomous driving space segment, more investments in this space are expected to happen sooner or later.

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