Lyft raises $1bn from CapitalG

Lyft announced it had just raised $1bn from CapitalG, the growth investment arm of Google’s parent company, Alphabet. The new round raises the ride-hailing company’s valuation to $11bn, according to Lyft.

The investment signals a massive shift in Alphabet’s alliance in the ride-hailing space. In 2013, Google Ventures made its largest investment ever when it invested over $250m in an early stake in Uber.

Alphabet’s head of corporate development, David Drummond joined the Uber board. In a 2016 Bloomberg Television interview, Google Ventures CEO Bill Maris said Google’s total investment in Uber surpassed $300m and was its largest investment.

In February, Google’s self-driving car spin-off, Waymo, sued Uber for allegedly stealing its intellectual property and using it to get ahead in the race towards autonomous cars.

In May, Waymo and Lyft announced they’ll be working together on a pilot project, which is likely to launch in Arizona later this year. Aside from working with Waymo, Lyft was the only ride-hailing service namechecked in Alphabet’s Sidewalk Labs Toronto project this week.

As part of the deal, CapitalG’s David Lawee will take a board seat.