(Reuters) – Lyft Inc has raised $1 billion in fresh financing, the ride-services company said on Thursday, in a round led by one of Alphabet Inc’s (GOOGL.O) investment funds, further complicating the convoluted world of ride-hailing alliances and dealing a blow to rival Uber Technologies Inc.
The round was led by CapitalG, the growth investment fund of Alphabet that has also backed large private tech companies such as home-renting platform Airbnb and payments firm Stripe. Six months ago, Lyft raised $600 million from a conglomeration of investors. Lyft said the latest round boosts its valuation to $11 billion from $7.5 billion.
CapitalG partner David Lawee will join the company’s board, Lyft said, bringing it to a total of 10 directors. (lft.to/2zB1NCw)
“Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth,” Lawee said in a statement.
Lyft, which runs a distant second to Uber [UBER.UL], has pushed expansion this year. The company says it is available across 41 states and completes more than a million rides a day
Lyft is deepening ties to Alphabet despite its partnership with General Motors Co (GM.N), which has invested $500 million. GM president Dan Ammann told Reuters this week that any further plans to collaborate with Lyft were “not defined at this time.”
Lyft and Alphabet already have a relationship through a partnership Lyft struck with Waymo, Alphabet’s self-driving car unit, in May. The two companies are collaborating on bringing autonomous vehicle technology to market, but have not provided many details.
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