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Google owner Alphabet leads $1bn funding round for Uber rival Lyft

Lyft has more self-driving partnerships than Uber Google owner Alphabet leads $1bn funding round for Uber rival Lyft
Orlondo Matamoros | Octubre 20, 2017, 15:47

Google parent company Alphabet's investment arm, CapitalG, has led a $1 billion investment round in Lyft, the companies confirmed on Thursday, raising Lyft's valuation from $7.5 billion to $11 billion. The ugly infighting among Uber's board has been made public, occasionally by its own board members, and the company is facing stricter regulations and restrictions in cities around the world, including Quebec and London.

The investment represents a further complication in the tangled web of alliances in the sector. The investment brings Lyft's post-money valuation to $11 billion.

Alphabet already has a relationship with Lyft through a deal Lyft struck with Waymo - Alphabet's self-driving vehicle arm - earlier this year.

The big investment comes as Uber and Google's Waymo are embroiled in fierce litigation over intellectual property.

This year, Waymo sued Uber, alleging trade secret theft, in a case that is set to go to trial in December. It has also been expanding its partnerships including with General Motors and the former Google Car unit now called Waymo. Any attempt to move into worldwide markets would likely be a rather costly endeavor for Lyft that the investment from Alphabet could potentially help foot.

Along with this increase in funds, Lyft also announced that it's expanded its service to 95% of United States residents - up from 54% at this point at the beginning of the year.