Alphabet Considers Lyft Investment of About $1 Billion
Google had previously invested more than $250 million in Uber. Lyft is the most despised adversary of Uber, which is associated with a progressing legitimate tussle with Waymo; in this way, it bodes well for Alphabet to put resources into Lyft.
Furthermore, the substantial funding could make a big impact on the U.S. ride-hailing market, in which Lyft has already gained market share this year as a result of Uber's series of scandals. Google was one of the early investors in Uber but is now embroiled in a bitter lawsuit with the company over stolen trade secrets.
"Whether we made a decision to partner with Uber or Lyft, I don't know what will be the end result".
Recently Lyft has been focusing on controlling its spending, as the cash would give the startup the chance to pursue more growth with subsidies for its drivers, discounts for its riders and marketing.
Both Alphabet and Lyft declined to comment when pinged by the publication. The two companies might be a good fit for each other: Waymo has been looking for a commercial outlet for its autonomous driving tech for years; Lyft, meanwhile, is a relative newcomer to autonomous driving, but has the commercial expertise Waymo lacks. Reportedly, till now, Uber has received $12.9 billion in venture funding and is valued at $68 billion, while Lyft has received only $2.6 billion and is valued at $7.5 billion. This would make it an even bigger thorn on the side of Uber, which is in a legal battle with Alphabet's self-driving unit Waymo.
If the investment pushes through, it will add to the already-heavy plate of problems of Uber and its new CEO.