Lyft raises $1 billion at $11 billion valuation led by Alphabet's CapitalG

20 October, 2017, 01:01 | Author: Jeannette Greene
  • Lyft operates along the Puget Sound from Tacoma to Arlington as well as Bellingham Wenatchee and Spokane

Alphabet's growth investment arm, CapitalG, led the round, and David Lawee, a partner at CapitalG, will join Lyft's board, the startup said Thursday in a blog.

Earlier this year, Waymo and Lyft formed a partnership to begin testing self-driving cars on the roads in a move that was widely seen as another attack on Uber.

Google's parent company Alphabet has invested $1 billion in Lyft, providing a major boost to the ride-hailing firm as it looks to compete with rival Uber.

The investment from Alphabet could provide a boost to Lyft as its battles Uber for market share in the US and would also enable Lyft to ensure its independence for the near future.

Uber, by comparison, was last valued at $70 billion.

Although Uber might have been first to market, Lyft is rapidly making a name for itself in the ride-sharing industry.

Lyft said the latest funding round gives it a valuation of $11 billion.


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

What's also interesting about this deal is that CapitalG was a backer for Uber early on in the company's life.

In 2013, Google invested $258 million in Uber through a different venture capital arm called Google Ventures, which was later rebranded under Alphabet as GV. 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 a year ago as the two companies began racing to develop autonomous vehicle technology.

The deals come as Waymo accuses Uber of using autonomous technology that allegedly was stolen by an ex-Google engineer.

Last year, Alphabet executive David Drummond stepped down from the Uber board.

Lyft and Alphabet already have a relationship through a partnership Lyft struck with Waymo, Alphabet's self-driving auto unit, in May.

Google has made a decision to take a Lyft.

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