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Alphabet could invest in Lyft

16 September 2017
Alphabet could invest in Lyft

Alphabet has been exploring closer ties with Lyft ever since it fell out with Uber.

But in a turn of events, the internet giant is now suing the ride-sharing service for allegedly stealing trade secrets from Google's self-driving vehicle company Waymo.

It is unknown whether the billion dollar investment into Lyft will come from Google or Alphabet's private-equity arm CapitalG, but it is speculated that the investment is being driven by Alphabet CEO Larry Page. The company has previously invested in Lyft's rival, Uber, but that relationship has soured lately. In May, Waymo and Lyft announced they were working together on testing self-driving taxis.

Such an injection of support from one of Silicon Valley's largest companies would certainly be a boost as it aims to grab more of Uber's market share. But others say that Alphabet will end up acquiring Lyft. The company also has two partnerships with startups for autonomous ride-sharing pilot programs: NuTonomy in Boston, and Drive.ai in San Francisco.

Meanwhile, the Wall Street Journal is reporting that SoftBank wants to inject ten-times that amount into Lyft's main rival Uber. Either way, this can't be good news for Uber. Uber has raised more than $15 billion compared with Lyft's more than $2 billion.

The possible funding initiatives come as Uber tries to rebound from a series of scandals that ultimately led to the resignation of company founder Travis Kalanick in June.

This funding by Google, if materializes, will prove to be a serious blow on the face of Uber, which is also struggling to secure more funding, currently.

For those unaware, Google is in the middle of a lawsuit against the popular ride-sharing service Uber for allegedly acquiring trade secrets from a former Google employee.

As of now, there have been no comments from Alphabet or Lyft about the investment rumors.