The investment arm of Google's parent company has invested in the ride-hailing company Lyft, raising $1 billion along with other companies, and valuing Lyft at $10-11 billion:
Alphabet Inc.'s investment arm, CapitalG, led a $1 billion investment in Lyft Inc. that values the ride-sharing startup at $11 billion, the ride-sharing startup said.
The funding marks a major shift in Alphabet's allegiances away from Uber Technologies Inc., and suggests a tighter pairing of its Waymo autonomous vehicle technology with Lyft's transportation network. David Lawee, a partner at CapitalG, will join Lyft's board.
The cash infusion helps Lyft compete with Uber, which has been reeling from a series of scandals and executive turnover in 2017. Bloomberg previously reported Alphabet was considering a $1 billion investment. The internet giant was a major Uber backer, but the companies have clashed in court over autonomous vehicle technology this year.
Lyft is considering an IPO by next year:
Lyft has had talks with investment banks about an initial public offering next year, according to two people briefed on the discussions, who asked to remain anonymous because the conversations are confidential. Lyft has not decided which bank may become its lead underwriter for an I.P.O., the people said.
[...] Lyft has benefited from Uber's series of high-profile stumbles in recent months to lift its own profile. The two companies are locked in something of a race for which can go public first; whichever company does will most likely set a benchmark for Wall Street for the valuation of a public ride-hailing company.
(Score: 2, Funny) by Ethanol-fueled on Friday October 20 2017, @01:47PM (2 children)
Welp, there goes the quality and charm of my favorite rideshare service, right down the shitter!
(Score: 2) by takyon on Friday October 20 2017, @07:11PM
Don't forget to tip your driver! 🐙
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0) by Anonymous Coward on Friday October 20 2017, @08:25PM
Well, google had to invest in someone before they took it over.
THey will sue uber into submission, and will take what's left at a fire sale while strenghening lyft right now.
I mean otherwise we'd have apple drivers or guys that are as fun to talk to as a back seat full of bill gates.