Alphabet leads $1 billion Lyft investment

Alphabet leads $1 billion Lyft investment”

Earlier this year, Waymo and Lyft formed a partnership to begin testing self-driving cars on the roads in a move that was widely seen as another attack on Uber. Waymo is also competing fiercely with Uber in the creation of technology for autonomous cars and is embroiled in a lawsuit over what it says is Uber's use of stolen Waymo trade secrets to develop such technology.

Over the past few years, Uber and Lyft have poured money into subsidies and other short-term stimulants of market share growth.

The second largest US ride services firm has been aggressively trying to overtake closest rival Uber.

Lyft has seized on Uber's turmoil as an opportunity to gain ground on its rival in the rapidly growing ride-hailing market while expanding into more cities across the U.S. Its drivers' cars can now be summoned by 95 per cent of the U.S. population, up from 54 per cent at the beginning of this year.

David Drummond, Alphabet's chief legal officer, took a board seat. The company also saw a flurry of interest from automakers in investing in the company, several sources told Recode.

Alphabet, which is based in Mountain View, California, has also emerged as a thorn in Uber's side, even though Google was among Uber's early investors and still holds a stake in the company.

It also has ties with car maker General Motors, which has invested $500m. Uber executives scoffed privately that Lyft was only worth $2 billion in 2016.

Alphabet's investment in and working relationship with Lyft solidifies that. The company now has partnered with several automakers and self-driving software developers.

"Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth".

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