Lyft raises $1 billion at $11 billion valuation led by Alphabet's CapitalG

Lyft raises $1 billion at $11 billion valuation led by Alphabet's CapitalG

"2017 has been an important year for the Lyft community".

Lyft just secured $1 billion in a funding round led by Alphabet's investment arm, CapitalG, giving it a post-money valuation of $11 billion. Things between Google and Uber have taken a turn for the worse, though.

Google's parent company Alphabet has invested $1 billion in Lyft, providing a major boost to the ride-hailing firm as it looks to compete with rival Uber.

Lyft also said that CapitalG partner David Lawee will be joining the company's board.

The funding round comes as a chummy relationship between Uber and Google has soured, in part due to a lawsuit between Waymo and Uber.

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The company already received an investment from GM GM.N but it looks like Lyft is shifting more to Alphabet, which has its own autonomous auto development platform Waymo. The $1 billion injection goes to show that the two companies are committed to taking their relationship forward.

Uber, which has a valuation of almost $70 billion, is widely expected to seal a deal for a major investment from Japan's Softbank, which could allow some stakeholders to cash out.

With the extra billion, Lyft would be able to ensure its independence for the near future, something co-founder John Zimmer has said is a priority.

Lyft added that less than 0.5 percent of miles traveled in the United States happen on rideshare networks, creating a "huge opportunity" for the company. Waymo previously confirmed that it's going to work on a self-driving vehicle project with Lyft. Since the lawsuit was filed a year ago, Alphabet has forged a close relationship with Lyft.

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