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Lyft raises an impressive $1bn from Google's CapitalG

Tags: lyft uber googles
About Lyft
  • Lyft is an American transportation network company headquartered in San Francisco.
  • Logan Green and John Zimmer launched the mobile app in Jun'12 that facilitates ridesharing by connecting passengers and drivers who have a car.
  • Lyft offers its services in about 300 American cities.
  • The company was valued at $5.5 billion in Jan'16 when it raised $1 billion from investors including General Motors Co.

  • Lyft raises an impressive $1bn from Google's CapitalG
    20 Oct 2017
  • Ride-hailing app Lyft has raised funding of $1bn led by Google's venture arm CapitalG, taking its valuation to $11bn.
  • CapitalG Partner David Lawee will join Lyft's board.
  • This comes even as Lyft continues to make profit on the back of several stumbling blocks in rival Uber's business.
  • In 2017 itself, Lyft increased its reach from 54%,of the US population, to 95%.

  • Google, moving from Uber to Lyft
  • It's interesting that CapitalG led the investment round, considering its parent company was an early investor in Uber.
  • In 2013, it pumped $258mn into Uber, then still nascent. It rose to $3.5bn in three years.
  • But recently, the two companies fought a lengthy legal battle over intellectual property rights. Google's Waymo sued Uber for stealing trade secrets.
  • Uber ended up firing the accused engineer.

  • What does this mean for Lyft?
  • Google's backing could give Lyft, the underdog till now, a much-needed boost to take on Uber. For one, it could continue staying private, leading to prolonged price wars in the industry.
  • It will also give a boost to Lyft's research into autonomous cars; the company already has a partnership with Waymo.
  • Google continues to be a major shareholder in Uber.

  • How is Lyft faring right now?
    Lift posted a 25% increase in gross bookings in the second quarter of 2016 ($1bn) as compared to the same period the previous year ($800mn) - a faster growth rate than Uber. Earlier in October'17, Lyft announced its 500 millionth ride.

    What troubles are plaguing Uber?
  • The last year has been especially hard for Uber. It battled allegations of intellectual theft, fraud and sexual harassment, and lost many of its top officials.
  • It admitted to using specially-designed software to evade law and ensure its drivers stay away from trouble.
  • In many places, drivers have launched protests seeking better compensation.
  • The company has been hit hard.

  • Despite setbacks, Uber continues to dominate
    Despite the setbacks, Uber claims 77% of the market share in the US. Its status as a global company gives it an edge over Lyft, which only operates in that country. Earlier this year, Uber announced its 500 billionth ride.

    This post first appeared on NewsBytes: Latest News, Breaking News India, Today News, Current News, please read the originial post: here

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    Lyft raises an impressive $1bn from Google's CapitalG


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