Lyft introduced that CapitalG, the funding division of Google’s mother or father firm, Alphabet, Inc., will make investments $1 billion within the ride-hailing firm. That funding values Lyft at $11 billion. However from the sound of it, Alphabet intends to work carefully with Lyft going ahead, as CapitalG associate David Lawee can even be a part of Lyft’s board.
As Automotive Information experiences, this funding additionally marks a change in technique for Alphabet. Prior to now, it invested closely in Uber. However after the 2 corporations ended up in courtroom over stolen commerce secrets and techniques, that relationship understandably fractured. Uber should still have a a lot larger valuation than Lyft, however it has additionally handled greater than its justifiable share of scandals this yr. These scandals led Travis Kalanick, Uber’s CEO on the time, to resign. He was finally changed by former Expedia exec, Dara Khosrowshahi.
What Lyft will do with the brand new cash remains to be up within the air, although. It’s slowly gaining market share within the U.S., however not like Uber, it doesn’t function abroad. CapitalG’s funding may very well be what it must strive increasing into international markets. Then once more, it might additionally reinvest that cash stateside in an try to enter home markets it doesn’t presently serve. About 95 % of Individuals have entry to Lyft, up from about 54 % at the beginning of 2017.
Again in Could, Waymo, Google’s autonomous driving division, introduced a partnership with Lyft. The ride-hailing firm additionally has partnerships with GM, Ford, and Jaguar Land Rover.
Supply: Lyft, Automotive Information (Subscription required)
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