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Alphabet's CapitalG invests $1 billion in Lyft

20 October 2017

But the technobromance first began to bud back in May, when Alphabet's autonomous vehicle development company Waymo partnered with Lyft, which gave Waymo a major boost in its effort to catch up with Uber-its main rival in the self-driving auto wars.

The falling out dates back to a year ago when Kalanick became convinced that Waymo meant to deploy its robotic cars in a rival ride-hailing service.

The ride sharing giant announced on Thursday it has raised $1 billion in a new investment round, led by Alphabet's CapitalG investment fund, pushing the San Francisco-based company's valuation to $11 billion.

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Lyft has gained market share in the USA this year as Uber suffered from executive turnover and self-inflicted wounds, including a protest over the company's ties to the Trump administration. Lawee was formerly Google's VP of corporate development. The investment brings Lyft's post-money valuation to $11 billion.

Those obstacles have taken their toll: while Uber has been valued as high as $70 billion, that number could fluctuate pending an investment deal with SoftBank, the Japanese conglomerate that's been eying a major stake in Uber. Waymo, Alphabet's self-driving-car company, has partnered with Lyft on the technology.

Lyft, which runs a distant second to Uber, has pushed expansion this year. A trial to decide the issue has been delayed until early December.

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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.

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

Google's self-driving vehicle spin-off Waymo is suing Uber in federal court, alleging that its former ally recruited some of its top engineers as part of an elaborate scheme to steal its trade secrets.

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Outwardly, Google's new cash infusion into Lyft is a strategic investment, but it may also be fueled by spite.

Alphabet's CapitalG invests $1 billion in Lyft