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.
- Amarnath Yatra attack mastermind Abu Ismail shot dead in Kashmir
- Slain pregnant high school teacher remembered for giving students hugs
- Pearson plc 44.3% Potential Decrease Indicated by Liberum Capital
- Formula One: McLaren, Honda to officially announce split at Singapore Grand Prix?
- Lawyer disappointed Shkreli's bail was revoked
- South Korea confirms traces of radioactive gas from North Korea's nuclear test
- Minnesota Vikings: Sam Bradford clearly in charge of offense
- Presidency: People of Kurdistan, Kirkuk reject Iraqi Parliament's 'unconstitutional' decision
- Spokane area school shooting: What we know
- Coroner: LSU student had 'highly elevated blood alcohol level,' THC in system