Alphabet could be lining up $1bn Lyft investment

Tyrone Stewart

LyftAlphabet has reportedly been in talks with Lyft in recent weeks about a potential $1bn (£756m)  investment in the US Uber rival.

According to Bloomberg, citing people familiar with the matter, the investment may come from Google or CapitalG – Alphabet’s private equity arm – though the deal still may fall through.

Alphabet was an early investor in Uber through its GV venture capital arm but its Waymo self-driving subsidiary is in the middle of a legal battle with Uber over stolen self-driving tech. This lawsuit has seen the relationship between the two fall apart, and has also seen Waymo enter into a partnership with Lyft to collaborate on the development of self-driving cars.

A $1bn investment will show that Alphabet is fully behind Uber’s main competitor in the US, which it has previously also held informal talks with about an acquisition.

In addition to its already existing partnership with Waymo, Lyft is also working with General Motors on self-driving cars, and has setup up its own autonomous driving centre in Palo Alto, California to develop hardware and software for self-driving vehicles.

Back in July, Lyft reached, and surpassed, the 1m rides per day milestone, as its continued growth shows no signs of slowing down while Uber continues the task of mending its image.

While Alphabet eyes a potential investment in Lyft, Softbank is planning on investing $10bn in Uber – as long as it can get a discount.