Alphabet Chatting with Lyft About Possible $1 Billion Investment
Google's parent company, Alphabet, is in talks to invest $1 billion in Lyft, according to reports from Bloomberg and Axios, which cite sources with knowledge of the matter.
Spokespeople for Alphabet and Lyft declined to confirm the report.
The funding could come from either Google itself or CapitalG, Alphabet's private equity arm, according to Bloomberg. And although a deal could still fall through, the timing suggests that Lyft is capitalizing on Uber's recent stumbles, taking the opportunity to grow its war chest while its better-funded competitor is busy licking its wounds.
Uber appointed a new chief executive, former Expedia CEO Dara Khosrowshahi, in late August after a string of scandals.
Lyft has to date raised more than $2 billion in venture capital funding from sources such as General Motors, Andreessen Horowitz, Mayfield, Floodgate and activist investor Carl Icahn.
Uber, in comparison, has raised more than $15 billion from Benchmark, Fidelity, Saudi Arabia's Public Investment Fund and GV, formerly known as Google Ventures. It remains the dominant player in the on-demand transportation industry.
An investment in Lyft could further complicate the already strained relationship between Alphabet and Uber. Despite Alphabet's past investment in Uber, its self-driving unit, Waymo, is currently suing the ride-hailing service, alleging use of trade secrets.
Softbank, a Japanese telecommunications company, is reportedly in talks to invest in Uber, but Axios reports that it has threatened to invest in Lyft unless Uber meets its terms.
© 2017 Los Angeles Times under contract with NewsEdge/Acquire Media. All rights reserved.
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