Alphabet’s CapitalG leads Lyft’s $1 billion funding round

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Alphabet’s CapitalG leads Lyft’s $1 billion funding round

Reuters

(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.

Spokespeople for Lyft…Read More

Lakeem Khodra
Lakeem Khodra
News Writer/Contributor at Tyranny News @lakeemk

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