California based transportation company, Lyft has raised around $1 billion in initial financing plans from a funding round led by one of Alphabet’s investment funds, further complicating the complicated world of ride-hailing alliances and dealing a blow to the rivalry company, Uber Technologies. The funding round was led by CapitalG, the growth investment fund of the multinational conglomerate company, Alphabet that has also backed large private tech companies such as home-renting platform Airbnb and renowned payments firm Stripe. Six months back, the transportation company raised $600 million from a conglomeration of investors. Lyft stated that the latest round took its valuation to $11 billion from $7.5 billion.
A spokesperson from Lyft mentioned that “David Lawee partner at CapitalG will join the company’s board of directors list and now they have 10 directors in total”. Lawee further added that “Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth,”
California based company has also eyeing on to expanding their services this year. The company says it is available across 41 states and completes more than a million rides a day, which is a big deal for any transportation company and they achieved it in just short span of 5 years.
Both the giants, Lyft and Alphabet already have a bond and official relationship through a partnership. The two companies are collaborating because of the clear vision of bringing autonomous vehicle technology to market, but haven’t provided many details regarding their plans and visions. Spokespeople for the companies also mentioned that “the latest investment will not have any bearing on the Waymo partnership.”
Previously, David Drummond, chief legal officer at Alphabet stepped down from the Uber board because of undisclosed reasons and this year Waymo sued Uber, alleging trade secret theft, in a case that is set to go to trial in December.