Google just delivered a $US1 billion blow to Uber

John ZimmerJohn Sciulli/Getty Images for LyftLyft cofounder and president John Zimmer.
  • Lyft just raised $US1 billion in a funding round led by CapitalG, the investment arm of Alphabet, Google’s parent company.
  • Alphabet has forged a close relationship with Lyft. Waymo, Alphabet’s self-driving-car company, has partnered with Lyft on the technology.
  • Lyft is now valued at $US11 billion.

Lyft just secured
$US1 billion in a funding round led by Alphabet’s investment arm, CapitalG, giving it a post-money valuation of $US11 billion.

Lyft has been growing its cash cushion to take on Uber. The $US1 billion Lyft secured in funding on Thursday follows a $US600 million funding round in April. The investors behind the April investment were not disclosed.

The latest funding round comes as Uber looks to rebound from a string of scandals that culminated in Uber founder Travis Kalanick’s resignation as CEO. Uber has lost some footing in key cities as of late; it lost its licence to operate in London and is subject to stricter restrictions in Quebec.

Meanwhile, Alphabet’s self-driving-car company Waymo is in a legal battle with Uber, claiming the ride-hailing giant stole intellectual property. Since the lawsuit was filed last year, Alphabet has forged a close relationship with Lyft. In addition to the latest round of funding, Waymo is partnering with Lyft on self-driving vehicles.

Interestingly enough, Google is also an early investor in Uber. Google Ventures poured $US258 million into Uber back in 2013.

Uber has most recently been valued at $US68.5 billion, but a series of scandals has taken a toll on its valuation.

Listen to an interview with Lyft’s founder, John Zimmer, on Business Insider’s Success! How I did it:

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