Alphabet Invests $1 Billion In Lyft

Lyft announced Thursday that Google-parent Alphabet is leading a $1 billion financing round into the ride-hailing company. This ups Lyft's valuation from $7.5 billion to $11 billion. The funding is coming from CapitalG, one of Alphabet's investment firms. CNET reports: "CapitalG is honored to work with Lyft's compelling founders and strong leadership team," David Lawee, CapitalG partner, said in a statement. "Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth." Compared with Uber, Lyft has long been the small dog in the ride-hailing world. Before now, it's received $2.6 billion in venture funding, whereas Uber has received $12.9 billion and is valued at $68 billion. Alphabet's investment in Lyft could be a sore spot for rival Uber. Uber is currently locked in a legal battle with Waymo.

Seems like they are pretty confident

[xevioso]

That they will win that lawsuit with Uber...

Re:

[kelemvor4]

That they will win that lawsuit with Uber...

They better hope so because otherwise they're doomed eventually. At least in Tampa, FL. USA, they share all the same drivers - but lyft rides are about twice the price. Honestly, given that it's the exact same thing for twice the money I don't know why anyone would choose to use lyft. It must be that they operate in some areas that Uber doesn't or something like that.

Sort of ironic

[nickovs]

It's a little ironic that Alphabet is putting this much money into Lyft given that back in 2013 Google Venture's largest deal to date [techcrunch.com] was to invest in Uber.

That's the whole point.

[DrYak]

It's a little ironic that Alphabet is putting this much money into Lyft given that back in 2013 Google Venture's largest deal to date [techcrunch.com] was to invest in Uber.

I really think that the whole point of this investment is to send a big "Fuck You !!!" to Uber, in the wake of their IP lawsuite.

Looks like a breaking-up couple that has reached the "throwing your stuff out of the window" and the "I'll cheat on you with the whole football / cheerleaders team" point.

Lyft is the football / cheerleaders team.

They had no choice!

[Kenja]

Which other company could they buy that started with an 'L'? Lycos? Please....

Re:

[xevioso]

L-3 Communications
Land O'Lakes
Estee Lauder
Lear
Leggett & Platt
Lennar
Lexmark International
Liberty Global
Liberty Media
Liberty Mutual Insurance Group
Eli Lilly
Limited Brands
Lincoln National
Liz Claiborne
Lockheed Martin
Loews
Longs Drug Stores
Lowe's

Pretty Easy to see where this is going......

[Puls4r]

Ride sharing + autonomous cars = future. This is Alphabet confirming that's where they are going. The big 3 know it too - they are all partnering with ride sharing companies. They've got the software backend already written. The big 3 provide the cars. It's the future business model.

Excellent

[Phoeniyx]

More VC subsidized taxi rides for me!

SoftBank invests in multiple ride hail coâ(TM

[spinitch]

SoftBank invests in multiple ride hail coâ(TM)s Looking to get in Uber while just injected more into Grab. Spreading bets since better chance of getting a winner or winners if they all succeed. Later might help in pushing for consolidation like SB tried with SnapDeal and FlipKart.

What better way to say "up yours!"?

[Kryptonut]

What better way to say "up yours!" than to inject $1 Billion into one of their main competitors? Also happens to be a wise move for advancing and marketing the tech.