It was first rumored last month that Google’s parent company was thinking about investing in ride-hailing platform Lyft. The rumors have turned out to be true. CapitalG, Alphabet’s growth investment fund, is leading a $1 billion investment round in Lyft. This latest financing round puts Lyft’s post-money valuation at $11 billion. Post-money valuation is a company’s value after financing from outside sources is added to its balance sheet.
This isn’t surprising at all. Google starting developing its self-driving car technology pretty early on. The autonomous driving efforts are now concentrated under Waymo, a division that’s now a part of Alphabet.
Alphabet is clearly interested in self-driving cars. Waymo previously confirmed that it’s going to work on a self-driving car project with Lyft. The $1 billion injection goes to show that the two companies are committed to taking their relationship forward.
It’s not like Google hasn’t invested in Uber as well. The company poured nearly $250 million in Uber back in 2013. The two companies though about collaborating on self-driving car technology back then. Things between Google and Uber have taken a turn for the worse, though.
Waymo and Uber are involved in a legal dispute as Waymo alleges that Uber is using its trade secrets for its self-driving car sensors.