Lyft Gets $1 Billion From Alphabet's Investment Arm To Take On Uber

The tangled web of ride-hailing investments just got a little more complicated.
On Thursday, Lyft announced it had just raised $1 billion from CapitalG, the growth investment arm of Google's parent company Alphabet. The new round raises the ride-hailing company's valuation to $11 billion, according to Lyft.

Lyft CEO and cofounder Logan Green with CapitalG's David Lawee and Lyft president and cofounder John Zimmer

The investment signals a massive shift in Alphabet's alliance in the ride-hailing space. In 2013, Google Ventures made its largest investment ever when it invested over $250 million in an early stake in Uber. Alphabet's head of corporate development, David Drummond, even joined the Uber board. In a 2016 Bloomberg Television interview, Google Ventures CEO Bill Maris said Google's total investment in Uber surpassed $300 million and was its largest investment.

As Uber got more interested in developing autonomous vehicles, there were even talks for the two to partner together -- until it all fell apart.
In February, Google's self-driving car spin-off, Waymo, sued Uber for allegedly stealing its intellectual property and using it to get ahead in the race towards autonomous cars. Drummond had left the Uber board as relationships between the two withered.

That's when Waymo...

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