Alphabet's CapitalG leads Lyft's latest $1 billion funding

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Alphabet's CapitalG leads Lyft's latest $1 billion funding

Alphabet has led a $1bn investment in ride-hailing app Lyft, a USA rival to Uber.

Ride-hailing company Lyft has raised a new $1 billion funding round, putting its post-money valuation at $11 billion total. David Drummond, Alphabet's chief legal officer, took a board seat.

The news isn't all that surprising considering Alphabet's self-driving auto unit Waymo in May announced a partnership with Lyft to bring autonomous vehicle technology to the masses.

The investment from Alphabet could provide a boost to Lyft as its battles Uber for market share in the US and would also enable Lyft to ensure its independence for the near future.

Lyft had raised $600 million at a $7.5 billion valuation in April this year.

Original story (9/15): Uber-rival Lyft may soon be getting a huge infusion of cash from Google parent company Alphabet.

The new investment creates a potential conflict for Alphabet, which was one of the early investors in Uber.

Uber, by comparison, was last valued at $70 billion.

Although Uber might have been first to market, Lyft is rapidly making a name for itself in the ride-sharing industry.

Bill Maris, founder of GV who has since left to run his own venture capital firm, has said there is a strong case for GV to sell. Lawee was formerly Google's VP of corporate development.

It's Lyft's second raise of 2017. In March 2016, Google built an "Uber tab" inside its Maps app.

The relationship began to crumble as Uber invested in self-driving cars, a key area of interest for Google, and Google began to experiment with ride-sharing, Uber's bread and butter.

News of this possible investment may deepen the rift between Alphabet and Uber.

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