Google’s parent Alphabet pumps US$1b into Lyft even as Uber woos SoftBank

David Lawee of CapitalG (center) flanked by Lyft co-founders David Green (left) and John Zimmer. Photo credit: Lyft.

CapitalG, the investment arm of Google’s parent company Alphabet, has led a US$1 billion funding round in Lyft, the American cab-hailing firm announced today. This brings the valuation of Uber’s rival to US$11 billion. Lyft’s total funding now amounts to US$3.6 billion.

CapitalG partner David Lawee is joining the Lyft board.

Lyft completed its 500 millionth ride earlier this month and is now available to 95 percent of the US population. “While we’ve made progress towards our vision, the fact remains that less than 0.5 percent of miles traveled in the US happen on rideshare networks. This creates a huge opportunity,” a Lyft blog post said.

Lyft’s funding comes amidst the scandal-ridden Uber negotiating with Japanese giant SoftBank for a mega investment.

See: Uber will go public within three years, new CEO tells staff

Alphabet is also an investor in Uber, but more recently Google’s self-driving car unit Waymo filed a lawsuit against Uber for alleged trade secret theft. Waymo subsequently invested in Lyft.