The ride-hailing app Lyft has secured $1 billion in new funding led by Alphabet. The investment was made through Alphabet’s CapitalG venture capital arm. The fresh funding has helped the company to increase its valuation by 50% to around $11 billion. Although the company still lags behind its arch-rival Uber that has the valuation multiple times to that of Lyft at $70 billion, Lyft through intelligent partnerships is emerging as the chief competitor Uber.
Lyft last month entered into a partnership with an automotive giant Ford for development of self-driving cars, the company has also got investments from GM and JLR as well of $500 million and $25 million respectively. The ride-hailing firm is also working with nuTonomy, Drive.ai on self-driving cars. It has also formed a separate division for development of self-driving cars. Through these intelligent moves, the company has successfully established itself as the main rival for Uber, which is struggling with trade secret lawsuit with Waymo on illegally accessing self-driving technology developed by Waymo. In the light of lawsuit between the companies, Alphabets’ investment in Lyft is important.
While in the US, Lyft has arrested the growth of Uber, in another development its rival in SouthEast Asia, Grab tapped banks for $700 million in debt facilities to develop its business. The company will be using this to expand its car rental fleet in Singapore and Indonesia. Grab had also received an investment of $2 billion from Didi Chuxing and SoftBank in July, this year.