Google Parent Company Considers $1B Lyft Investment

Even though Google’s self-driving car division Waymo is still embroiled in a legal battle with Uber, its parent company Alphabet is reportedly thinking of investing $1 billion in Lyft. On top of having a partner in the transportation industry, this would also serve to give Uber a black eye. Considering how the upcoming trial between the two companies could impede the cab-hailing firm’s autonomous ambitions, a lot of money could be riding on Google’s arrangement with Lyft.

The two companies have apparently been in talks over the past several weeks, Bloomberg reports. According to people with knowledge of the matter, it seems the direction of the discussion is favorable. If it does come through, the $1 billion could come from either Google itself or CapitalG, which is Alphabet’s private-equity firm.

It’s worth pointing out that Alphabet is a shareholder in Uber via its venture capital arm, GV. However, since the relationship between the two companies is not exactly in the most cordial terms, it’s only natural that the tech giant would want to hedge its bets. Hence, why it’s making deal with Lyft, Uber’s biggest competitor in the US.

Lyft itself has been taking a more miserly approach these days, preferring to control its spending wherever possible. However, with the money that it could get from Alphabet, the ride-hailing firm could finally start becoming more aggressive.

Such a large amount of cash could help Lyft subsidize more vehicles for drivers, for example, or it could offer better rates to customers. More widespread marketing would not be out of the question either.

When asked about the news, neither Lyft nor Alphabet released any comments, CNET reports. Right now, Lyft is valued at over $7.5 billion, which is considerably smaller than Uber’s $68 billion. Even so, with the bigger brand having been submerged in boiling water for some time now, there might be a chance for the underdog to finally have its day.