Alphabet invests $1 billion in Lyft

Alphabet is investing 845 million euros in Lyft, the taxi company with an online platform. After this investment, the company’s valuation comes to a total of $11 billion, or just over $9 billion. Part of the investment is that David Lawee, head of Alphabet’s investment arm CapitalG, will join Lyft’s board.

In a brief announcement, Lyft said it has increased the company’s reach from 54 percent of the population to 95 percent since the beginning of this year. It is not clear how large that percentage is at the moment at competitor Uber. Rumors about the substantial investment were already circulating in September.

Google parent company Alphabet and Lyft have long had a trading relationship with each other. In May, it was announced that Alphabet subsidiary Waymo would collaborate with Lyft on the development and implementation of self-driving cars.

Meanwhile, Google is also involved in a lawsuit with Lyft competitor Uber. The internet giant accuses the company of using stolen trade secrets obtained through an ex-Waymo employee. The case is still ongoing. A few years ago, Alphabet’s investment arm invested $258 million in Uber.