Ride-hailing company Lyft has raised a new $1 billion funding round led by one of Alphabet Inc’s investment funds, CapitalG.
The funding round was led by the CapitalG, which further complicates the complex world of ride-hailing alliances and dealing a blow to rival Uber Technologies Inc.
CapitalG, an investment arm within Google-parent Alphabet, will lead a $1 billion funding round for Lyft, the companies said on Thursday. CapitalG Partner David Lawee will join Lyft’s board. The round is not closed yet.
“CapitalG is honored to work with Lyft’s compelling founders and strong leadership team,” Lawee said in a statement. “Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth.”
Six months ago, Lyft raised $600 million from a conglomeration of investors. Its latest round increases its valuation to $11 billion from $7.5 billion.
Alphabet’s self-driving car unit, Waymo, confirmed earlier this year it would partner with Lyft on a self-driving car project. Lyft noted in a statement that its service is now available to 95 percent of the U.S. population up from 54 percent at the beginning of the year.
The funding round comes as a close relationship between Uber and Google has gone sour, in part due to a lawsuit between Waymo and Uber. Waymo alleges that Uber is using one of Waymo’s trade secrets for its autonomous vehicle sensors.The case is set to go to trial in December.
Lyft, now worth $11 billion, is still much smaller than the nearly $70 billion market leader Uber.
Lyft is deepening ties to Alphabet despite its partnership with General Motors Co. which has invested $500 million. GM president Dan Ammann said this week that any further plans to collaborate with Lyft were “not defined at this time.”
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