Alphabet Definitively Ends Friendship With Uber, Welcomes New Best Friend Lyft

Alphabet Definitively Ends Friendship With Uber, Welcomes New Best Friend Lyft

Alphabet Definitively Ends Friendship With Uber, Welcomes New Best Friend Lyft

Lyft is now in an expansion mode in the U.S.

News of this possible investment may deepen the rift between Alphabet and Uber.

Bloomberg previously reported Alphabet was considering a $1 billion investment.

The funding marks a major shift in Alphabet's allegiances away from Uber, and suggests a tighter pairing of its Waymo autonomous vehicle technology with Lyft's transportation network. "We're also excited to work with CapitalG Partner David Lawee, who is joining Lyft's Board". The company announced through its official blog that Alphabet's CapitalG investment arm is leading the company's latest $1 billion investing run, and because of this, Lyft is now valued at a total of $11 billion. This brings Lyft's post-money valuation to $11 billion.

Spokespeople for Lyft and Alphabet have said the latest investment will not have any bearing on the Waymo partnership. Uber began heavily recruiting Google employees for a number of divisions within the company and Google chief legal officer David Drummond stepped down from Uber's board previous year as the two companies began racing to develop autonomous auto technology. Those tensions prompted one of Google's top executives, David Drummond, to resign from Uber's board a year ago.

The deals come as Waymo accuses Uber of using autonomous technology that allegedly was stolen by an ex-Google engineer. SoftBank wants to buy between $7 billion and $10 billion in shares from Uber employees and investors. On paper, Uber remains the far more valuable company.

"This thing likely goes up from here", Maris said. It points out in its statement that just 0.5% of miles traveled in the United States are made through rideshare networks which leaves a big opportunity for companies, like Lyft, to seize on.

This funding round may delay those IPO plans, however, as the capital will allow Lyft to continue growing its business privately.

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