It looks like US technology giant Alphabet has definitively ended its relationship with Uber. The company has made Lyft as its new best friend. Lyft on Thursday announced that CapitalG will be making a $1 billion investment in the ride-sharing company. CapitalG is the investment arm of Alphabet which was earlier known as Google Capital. The value of Lyft has gone up to $11 billion since the investment round got over. Also, CapitalG partner David Lawee is going to join the Lyft board.
Alphabet, Google’s parent was looking to invest big time in Lyft for the last few months. The company took more serious steps to invest in Lyft in September 2017. The two companies have been at friendly lines since May this year. The companies looked poised to work together for quite some time. In the month of May, Waymo teamed with Lyft. Waymo is Alphabet’s autonomous vehicle development company. Lyft is a major supporter of Waymo in its quest to defeat Uber in the self-driven car wars.
Before joining hands with Lyft, Alphabet had teamed up with Uber back in 2013. Back then Alphabet made a massive $258 million investment in Uber through its subsidiary company Google Venture, famously known as “GV”. As part of the deal Alphabet chief legal officer David Drummond also joined the Uber board. The two companies looked to part ways in early 2015 when they argued over the self-driving taxis. The other deals between the companies have since managed to hold own. However, the final nail in the coffin of the relation between Waymo and Uber came earlier this year in February. Waymo sued Uber alleging that an Uber engineer stole important design and trade secrets in connections with the self-driving cars.
Since Waymo sued Uber, the latter has been struggling to keep its reputation in the market. The company has been hit by regular challenges and numerous embarrassing situations. The company has been facing a severe allegation of mismanagement and spoilt corporate culture within the company. On the other hand, Lyft has been slowly making its presence felt in the market. The ride-share company has seen a rise in rides and revenues. Now Alphabet has invested in Lyft in an attempt to overtake Uber as the latter is on the downside.