Google owner Alphabet leads $1bn funding round for Uber rival Lyft
Alphabet's funding boost will help Lyft step up its challenge just as Uber faces up to the potential loss of its London licence.
Friday 20 October 2017 09:14, UK
Google's parent company Alphabet is leading a $1bn round of new funding for ride-hailing company Lyft that will help it step up its challenge to larger rival Uber.
The funding is being led by CapitalG, Alphabet's growth investment fund, which has also backed tech companies such as home-renting platform Airbnb and payments firm Stripe.
It is the latest challenge to Uber, which is appealing against a decision by London transport bosses
The investment represents a further complication in the tangled web of alliances in the sector.
Lyft, which is currently a distant second to Uber in the ride-hailing market, said the latest round of funding would boost its valuation from $7.5bn to $11bn. Uber has been valued at as much as $70bn.
Alphabet already has a relationship with Lyft through a deal Lyft struck with Waymo - Alphabet's self-driving car arm - earlier this year.
The Google owner is also linked to Uber after a second investment arm, GV, backed it in 2013 - but that was before Uber began to develop autonomous cars, in direct competition to Alphabet.
This year, Waymo sued Uber, alleging trade-secret theft, in a case that is set to go to trial in December.
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Lyft has been pushing expansion this year, saying it is available across 41 US states and completes more than a million rides a day.
It also has ties with carmaker General Motors, which has invested $500m.
CapitalG partner David Lawee, who will join Lyft's board as part of the latest fundraising, said: "Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth."