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Alphabet Invests $1 Billion In Lyft (cnet.com)

Posted by BeauHD on from the ride-hailing dept.

Lyft announced Thursday that Google-parent Alphabet is leading a $1 billion financing round into the ride-hailing company. This ups Lyft's valuation from $7.5 billion to $11 billion. The funding is coming from CapitalG, one of Alphabet's investment firms. CNET reports: "CapitalG is honored to work with Lyft's compelling founders and strong leadership team," David Lawee, CapitalG partner, said in a statement. "Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth." Compared with Uber, Lyft has long been the small dog in the ride-hailing world. Before now, it's received $2.6 billion in venture funding, whereas Uber has received $12.9 billion and is valued at $68 billion. Alphabet's investment in Lyft could be a sore spot for rival Uber. Uber is currently locked in a legal battle with Waymo.

15 comments

  1. Seems like they are pretty confident by xevioso · · Score: 1

    That they will win that lawsuit with Uber...

    1. Re:Seems like they are pretty confident by kelemvor4 · · Score: 1

      That they will win that lawsuit with Uber...

      They better hope so because otherwise they're doomed eventually. At least in Tampa, FL. USA, they share all the same drivers - but lyft rides are about twice the price. Honestly, given that it's the exact same thing for twice the money I don't know why anyone would choose to use lyft. It must be that they operate in some areas that Uber doesn't or something like that.

    2. Re: Seems like they are pretty confident by Anonymous Coward · · Score: 0

      I got a ride to the airport yesterday in Indianapolis and Lyft was $9 cheaper. No surge pricing, either.

    3. Re:Seems like they are pretty confident by Anonymous Coward · · Score: 0

      Quite the opposite here. Lyft fares ARE cheaper. I asked one my drivers why they drove for Lyft vs. Uber. He said, he drives for both, but avoids Uber. That was that, according to him, Lyft fares paid more than Uber. I scratched my head thinking how can this be? I could only conclude that Lyft pays more of the fare to their drivers and that Uber totally screws their drivers AND customers.

  2. Sort of ironic by nickovs · · Score: 2

    It's a little ironic that Alphabet is putting this much money into Lyft given that back in 2013 Google Venture's largest deal to date was to invest in Uber.

    --
    If intelligent life is too complex to evolve on its own, who designed God?
    1. Re:Sort of ironic by Anonymous Coward · · Score: 0

      It is like politics. You invest in both candidates, to ensure that whomever wins owes you some consideration.

    2. Re:Sort of ironic by Anonymous Coward · · Score: 0

      *whom'st'd've

  3. They had no choice! by Kenja · · Score: 1

    Which other company could they buy that started with an 'L'? Lycos? Please....

    --

    "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    1. Re:They had no choice! by xevioso · · Score: 1

      L-3 Communications
      Land O'Lakes
      Estee Lauder
      Lear
      Leggett & Platt
      Lennar
      Lexmark International
      Liberty Global
      Liberty Media
      Liberty Mutual Insurance Group
      Eli Lilly
      Limited Brands
      Lincoln National
      Liz Claiborne
      Lockheed Martin
      Loews
      Longs Drug Stores
      Lowe's

  4. Pretty Easy to see where this is going...... by Puls4r · · Score: 1

    Ride sharing + autonomous cars = future. This is Alphabet confirming that's where they are going. The big 3 know it too - they are all partnering with ride sharing companies. They've got the software backend already written. The big 3 provide the cars. It's the future business model.

  5. Excellent by Phoeniyx · · Score: 2

    More VC subsidized taxi rides for me!

  6. That's the whole point. by DrYak · · Score: 1

    It's a little ironic that Alphabet is putting this much money into Lyft given that back in 2013 Google Venture's largest deal to date was to invest in Uber.

    I really think that the whole point of this investment is to send a big "Fuck You !!!" to Uber, in the wake of their IP lawsuite.

    Looks like a breaking-up couple that has reached the "throwing your stuff out of the window" and the "I'll cheat on you with the whole football / cheerleaders team" point.

    Lyft is the football / cheerleaders team.

    --
    "Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
  7. SoftBank invests in multiple ride hail coâ(TM by spinitch · · Score: 1

    SoftBank invests in multiple ride hail coâ(TM)s Looking to get in Uber while just injected more into Grab. Spreading bets since better chance of getting a winner or winners if they all succeed. Later might help in pushing for consolidation like SB tried with SnapDeal and FlipKart.

  8. What better way to say "up yours!"? by Kryptonut · · Score: 1

    What better way to say "up yours!" than to inject $1 Billion into one of their main competitors? Also happens to be a wise move for advancing and marketing the tech.