Alphabet considering major investment in Lyft

Alphabet considering major investment in Lyft

Alphabet considering major investment in Lyft

An early breakthrough in the space, based on deals like Lyft, will encourage investors and boost Alphabet's share price and competitive position against the likes of Apple AAPL, Intel INTC and NVIDIA NVDA.

The investment discussions come months after Alphabet's self-driving vehicle unit, Waymo, announced a partnership with the ride-hailing app. Waymo and Lyft will combine resources to collaborate on self-driving technology that could alter the ride-hailing industry. Google, which had previously invested $258 million in Uber (via Google Ventures), is suing Uber for allegedly stealing thousands of files from Google's self driving vehicle company, Waymo.

As well as benefitting the company itself, the investment could give popular ride-hailing company Uber a run for its money, after already coming into trouble this year replacing its CEO and being brandished for inequality and sexual harassment.

Ahead of Lyft are Uber, which has raised $15.1 billion with a current valuation of $68 billion; Didi Chuxing, which has raised $14.1 billion; and Singaporean ride sharing company Grab, which has raised $3.44 billion. The investment could come from Google or CapitalG, Alphabet's investment division. In May, they partnered with Lyft to work on autonomous driving together. This was evident when the company offered promotional code for a Lyft ride for the upcoming Pixel 2 launch event.

This, we believe, is definitely benefiting Uber's biggest rival Lyft.

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It also underscores just how much the relationship between Google and Uber has deteriorated in recent months.

This Alphabet investment might be aimed at keeping Lyft on its side amid the legal battle with Uber.

The possible funding initiatives come as Uber tries to rebound from a series of scandals that ultimately led to the resignation of company founder Travis Kalanick in June.

Alphabet isn't the only one showing interest.

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