Business

Alphabet Mulling $1 Billion Investment in Lyft, Report Says

Share
John Zimmer

The sources, who asked to remain anonymous, said that the $1 billion investment could either come from Google or Capital G, Alphabet's private-equity arm.

The word is that the investment in Lyft is being driven by top-level executives, including Alphabet's Larry Page.

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

Moreover, the duo, Waymo and Lyft, are already working on a self-driving vehicle pilot program. Although the online search giant did invest millions of dollars into the ride-hailing company, it's also now battling with it in court. But others say that Alphabet will end up acquiring Lyft. This was evident when the company offered promotional code for a Lyft ride for the upcoming Pixel 2 launch event. The companies said that under their partnership, they would work together on new self-driving products and pilot projects. It is now the second largest ride-hailing service in the U.S.by ride volume after Uber.

With another $1 billion in hand, Lyft could ensure its independence during the near future, something John Zimmer its co-founder said was a priority. 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.

If the investment pushes through, it will add to the already-heavy plate of problems of Uber and its new CEO.

However, Lyft could come as a welcomed addition to Canadian streets, as it's not only known for being a safer ride-share option but also for the treatment of its drivers. It would allow the company to expand its technology and services.

As of now, there have been no comments from Alphabet or Lyft about the investment rumors.

Share